Cohort Analysis

How does Cohort Analysis work?

Cohort analysis is a subset of behavioral analytics that takes the data from a given eCommerce platform, web application, or online game and rather than looking at all users as one unit, it breaks them into related groups for analysis. These related groups, or cohorts, usually share common characteristics or experiences within a defined time-span. Cohort analysis allows a company to see patterns clearly across the life-cycle of a customer (or user), rather than slicing across all customers blindly without accounting for the natural cycle that a customer undergoes.

Cohort Analysis

When understanding statistical insights from online marketing, it is important to recognize that not all potential customers are alike. Utilizing cohort analysis presents a more precise reading of samples from throughout the population you as a business are trying to reach. Allocating customers into cohorts with common characteristics and/or experiences allows a company to access specified data pertaining to a customer’s natural funnel experience, without being premature or tardy in providing targeted marketing messaging.

By adjusting online marketing analysis to be more indicative of how people behave, we can develop insights into client’s customer data that most accurately describes and anticipates similar consumer behaviors across identifiable categorical qualities. Confidently grasping an understanding of cohort analysis is essential in being able to grow an engaged consumer base that reaches every potential demographic in the most efficient delivery possible.

Our client’s growth at 565 Media is tied closely to our ability to provide the most in-depth cohort analysis. Our team of marketing analysts monitors daily the performance of ad campaigns across multiple platforms, optimizing each to its intended audience in order to ensure our data is tailor fit to our specified cohorts. Successfully identifying customer cohorts is essentially in driving positive leads to your business while limiting burn rate.

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