Product
User cohorts
Definition of
User cohorts refer to groups of users who share similar characteristics or behaviors within a software product or service. Cohort analysis involves analyzing user behavior and performance data to identify patterns and trends over time, such as user retention rates, conversion rates, or revenue per user. By grouping users into cohorts, businesses can better understand how different segments of their user base are using their product or service and identify areas for improvement or growth. As an example for B2B SaaS, consider a cloud-based project management software that offers a free trial to new users. The software provider may use user cohorts to analyze how different segments of their user base are engaging with the software and identify areas for improvement. For example, the provider may group users into cohorts based on their industry, company size, or user role, and analyze how each cohort is using the software over time. The provider may find that users in a certain industry or with a certain job title are more likely to become paying customers, or that users who use certain features of the software are more likely to renew their subscription. By using cohort analysis to identify these trends and patterns, the software provider can make data-driven decisions about how to optimize their product or service and improve customer engagement and retention.
Groups of users who share a condition or attribute with each other – often a time-based condition.
