How Cohort Analysis Can Transform Your Customer Insights | by Shirley Bao, Ph.D. | Sep, 2024

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Discover how tracking customer behavior over time with cohort analysis can improve engagement and retention strategies for your business

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Despite months of marketing efforts, your sales are still going down and customer engagement is declining. What is going wrong? What if there is a way that you could pinpoint exactly when and why your customers lose interest? Cohort analysis might just be the tool you need. It can help to identify which group of customers is driving that decline, and what specific moment they disengage. Instead of looking at your customer base as a whole, cohort analysis allows you to track behavior over time for specific groups. It’s the key to truly understanding your customer engagement and retention and making informed decisions to fix the problems before they get worse.

Customer segmentation is the first step in breaking down your audience into more meaningful groups. However, while segmentation helps classify customers based on shared characteristics, it provides only a static view. Cohort analysis takes segmentation a step further by introducing a time-based perspective. You can think of segmentation as a…

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