Cohort exploration is a powerful analytics method that allows businesses to gain insights into the behavior and performance of groups of users (cohorts) that share common characteristics. By analyzing cohorts, you can better understand user retention, acquisition trends, and how changes to your app or website affect user behavior over time.
What are User Acquisition Cohorts?
A cohort is a group of users with a shared attribute, such as the acquisition date, event triggers, or transaction patterns. Cohort exploration lets you track and analyze these groups based on their behavior across specific time periods.
For example, users acquired during a promotional week can be grouped into a cohort to monitor how quickly they make their first transaction or how long they remain active.
Benefits of Cohort Exploration
- Understand user retention: Identify trends in how long users stay engaged with your app or site.
- Measure success of updates: Analyze if new features or promotions boost user activity.
- Identify key user behaviors: Understand which actions drive user retention and conversions.
- Optimize marketing efforts: Compare acquisition sources for better ROI.
Also Read: [GA4] Analytics Dimensions and Metrics
How Cohort Exploration Works
Cohort exploration involves setting Inclusion and Return criteria, as well as selecting time frames and metrics.
Key Elements:
- Cohort Inclusion
Defines the initial condition for adding users to a cohort:- Acquisition Date: The user’s first visit to your app or website.
- Any Event: The first event triggered by the user.
- Transactions or Conversions: The first purchase or conversion action.
- Return Criteria
Specifies the condition users must meet to remain in the cohort, such as:- Triggering any event.
- Making a transaction.
- Completing a conversion.
- Cohort Granularity
Determines the time frame for cohort analysis:- Daily
- Weekly
- Monthly
- Cohort Calculation
- Standard: Tracks user activity in a specific time period.
- Rolling: Includes cumulative data from all previous periods.
- Cumulative: Includes total user activity across all periods.
Example Scenarios
Example 1: Analyzing Retention During a Product Launch
- Inclusion Criteria: Users acquired during the launch week (e.g., October 1-7).
- Return Criteria: Users who revisit the app in the following week.
- Outcome: Identify if the new product launch increased retention rates.
Example 2: Tracking Promotions
- Inclusion Criteria: Users making their first transaction during a promotional period.
- Return Criteria: Users making repeat transactions.
- Outcome: Understand how effective promotions are in driving repeat purchases.
Configuring Cohort Exploration
Follow these steps to configure and analyze cohorts in your analytics tool:
- Go to Explore and select Cohort Exploration from the template gallery.
- Define the Inclusion Criterion (e.g., acquisition date or specific event).
- Set the Return Criterion (e.g., subsequent transactions or app interactions).
- Choose Cohort Granularity (daily, weekly, or monthly).
- Add a Breakdown Dimension (e.g., device type, geography) for deeper insights.
- Monitor user behavior across the selected time frames.
Example: Weekly Transactions Analysis
| Timeframe | Total Users | Weekly Transactions | Retained Users |
|---|---|---|---|
| October 1–7 (Promo) | 10,000 | 500 | 300 |
| October 8–14 | 300 | 150 | 100 |
| October 15–21 | 100 | 50 | 30 |
Tips for Effective Cohort Analysis
- Use breakdown dimensions to compare user behavior across device types or regions.
- Regularly analyze cohorts to measure the impact of updates or new features.
- Combine cohort analysis with metrics like conversion rates and revenue per user for actionable insights.
Limitations of Cohort Exploration
- A maximum of 60 cohorts can be analyzed at once.
- Breakdown dimensions are limited to the top 15 values.
- Demographic dimensions may exclude small user groups to maintain anonymity.
For more insights into user behavior analysis, check out our guide on Highest Paying Jobs in IT.
Conclusion
User acquisition cohorts offer a structured way to analyze the behavior and retention of specific user groups. By leveraging cohort exploration, businesses can identify trends, optimize user retention strategies, and make data-driven decisions to enhance their app or website’s performance.