cohort analysis

is analysis based on the simple idea of looking past total revenue and total number of customers and instead focusing on the performance of each group of customers (i.e. The performance of new customers within each month).

Although it sounds complex, it is based on a simple premise. Instead of looking at cumulative totals or gross numbers such as total revenue and total number of customers, one looks at the performance of each group of customers that comes into contact with the product independently. Each group is called a cohort. The graph shows the conversion rates to IMVU of new customers who joined in each indicated month. Each conversion rate shows the percentage of customer who registered in that month who subsequently went on to take the indicated action. Thus, among all the customers who joined IMVU in February 2005, about 60 percent of them logged in to our product at least one time.

cohort analysis, n.All

cohort analysis