Cohort Analysis

In ecommerce a cohort analysis is an analysis of customers grouped by some attribute. Most frequently they are grouped by the year and month they first ordered in.

Cohorts each act as a customer segment where each segment has the same/similar attribute.

A Cohort Analysis will analyze customers who belong to each cohort, usually measuring standard ecommerce metrics like:

Once analyzed, the different cohorts can be compared to each other. This allows you to identify over and under-performing cohorts.

Often a cohort analysis will also measure the cohort's metrics over time. This lets you see how the next months after their initial order.

Eric Davis

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Topics: Glossary Cohort analysis

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