What is Cohort Analysis?
Cohort analysis divides users into groups (cohorts) based on a shared attribute — most commonly the date they signed up or first used a feature — and then tracks how each cohort behaves over subsequent time periods.
This approach reveals whether your product is improving over time. If newer cohorts retain better than older ones, your recent changes are working. If retention is declining, something needs attention.
Common cohort types include acquisition cohorts (grouped by sign-up date), behavioral cohorts (grouped by a specific action they took), and segment cohorts (grouped by attributes like plan type or geography).
Example
You compare January signups vs. February signups and find that February users have 15% higher 30-day retention. Investigating further, you discover a new onboarding flow launched in February is driving the improvement.
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