Cohort Analysis – An Ultimate Tool for Boosting Customer Growth and Retention


Adesh Chaurasia– Cohort Analysis

According to me, the attention and effort invested in designing, manufacturing, and circulating out products and services should be equal to the effort invested in learning about customer growth, interests, likes as well as dislikes. That’s how companies flourish in order to achieve great heights.

The overall growth of a company or business organization gets restricted to a great extent if the interests and consumption patterns of the potential and target consumers are not known.

What is Cohort Analysis?

A cohort is a bunch of users possessing similar characteristics and traits.

Cohort analysis refers to keeping a track of engagement over time. It helps to understand the following points better-:

The consumption trends of current customers

The market trends to attract new customers

To pull back previous customers

To develop a better and wider target group of customers

To enhance business activities

To contribute to business promotions and flourishing in the best way possible

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Cohort analysis assists in devising a plan of action when it comes to consumer growth which in turn adds up to the betterment of the company.

Cohort analysis works on three basic questions -:

Who all are interested in dealing with the company as customers?

Why are some of the customers losing interest in dealing with the company any further?

How can new customers be attracted?

How can old customers be pulled back?

The Ecommerce industry is expanding relentlessly with the inclusion of technology, science, and other modern techniques. With the expansion, the competition rate amongst various players in a similar market also increases.

With increasing competition in the field, there’s the strenuous scope of pushing the business and profit extractions forward. Business activities and profit gains can only be attained by using unique, effective, and strong ideas that efficiently trace customer inclusion in the business organization.

Significance of Cohort Analysis

Product /service popularity

Cohort analysis helps in tracing out the popularity and demands of a particular product or service as justified by the customer trends and patterns. Thai in turn helps to calculate the kinds and amounts of products of the similar kind to be mentioned.

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Brand loyalty

Old and persistent customers are likely to be more interested in spending money and granting business to a specific company or brand rather than attracting new customers from scratch.

Calculating conversion rate

The ideal rate at which the leads are converted into consumers is known as the conversion rate. It is always beneficial to get an idea of the conversion rate in order to recognize the extra efforts needed to boost the growth rate in case of low conversion rates or maintain good work in case of moderate or high conversion rates.

Not only a strong cohort analysis report provides technical information regarding almost all needed aspects but also efficient solutions that can help in the betterment of the business organization in the long run.

At the end

Cohort analysis is a relatively new and highly beneficial method that has quickly been picked up and used by entrepreneurs to boost their business growth. Such methods and techniques are rightly expected to grow and expand in a positive direction in the coming future.


Author- Adesh Chaurasia

He is an active learner, author and speaker when it comes to the subject of national development through scientific and relational ways. He presents his knowledge about his line of work in such a simple yet engrossing manner that it reaches out to the people so as to enhance their knowledge and put it to good use.

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