Cohort analysis is a tool to measure the engagement of groups with similar characteristics.
Cohort analysis breaks down data from a large set of groups to a smaller set of groups with shared characteristics to better understand their behavior. So rather than looking at all users as a unit, cohort analysis breaks them into related groups and measures their engagement in a specified timeframe.
The analysis provides you with useful information so that you can make an informed decision for your next move, which can help you in many ways, such as reducing the churn rate and increasing revenue. The chart shown below demonstrates a visual of cohort analysis.
