Cohort Analysis
Noun · Startup & VC
Definitions
Analyzing user behavior by grouping users who share a common starting characteristic (sign-up date, acquisition channel, plan type) and tracking their metrics over time. Reveals whether product improvements actually improve retention, or if overall metrics are just improving because of growing user volume masking declining retention.
In plain English: Grouping users by when they joined and tracking how each group behaves over time, revealing whether things are truly improving.
Example: "Cohort analysis shows January signups have 40% day-30 retention vs 25% for December — the onboarding redesign is working."