A cohort is a specific group of customers, typically categorized by the length of time a customer has been with a company. Cohorts are created for analysis.
EXAMPLES: of cohorts that you can analyze:
- Year-One Cohort: Customers who are in the first 12 months of their relationship with your business
- Q1 2019 Cohort: Customers who started their relationship with your company in Q1 of 2019
- “Pro” Cohort: Customers who purchased the “Pro” version of your service
Use case: For annual business, examine the churn rate of your Year-One Cohort against your Year-Two Cohort.