Cohort Analysis
Cohort analysis groups users by a shared characteristic or start date, such as the week they first visited, and tracks how each group behaves over time. It reveals retention and value patterns that aggregate numbers hide.
Why It Matters
It shows whether newer users are more or less valuable than earlier ones, exposing the real effect of changes to product, targeting, or channels. It is the clearest way to see retention and lifetime value trends.
Common Mistake
Reading blended averages instead of cohorts. A rising overall average can mask that recent cohorts are performing worse, because strong older cohorts prop up the number.