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    Cohort Analysis

    A cohort analysis is a form of consumer research in which businesses group consumers based on a common trait and analyze their behavior and purchasing habits over time.

    What Is a Cohort Analysis?

    Understanding consumers is crucial for winning their business, and many brands use thorough consumer research to tap into what their consumer segments want and need from their shopping experiences. 

    A cohort analysis enables a business to better understand the niche needs of particular customer segments, which can equip them to meet those needs through tailored marketing and sales efforts.

    To conduct a cohort analysis, a business needs to gather data on their customers’ purchasing needs, habits, and behaviors. With a general understanding of these elements, the business can then group customers into segments based on their shared characteristics. Then, they would monitor that segment’s behavior over a fixed period of time to better understand the unique needs of that group.

    As ecommerce evolves and becomes more complex, keeping a strong pulse on consumers’ individual needs can help businesses increase retention, personalize their marketing efforts, and keep pace with emerging trends.

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