Glossary term
Cohort Analysis
Tracking groups of customers by acquisition period to reveal retention and expansion dynamics invisible in aggregate metrics.
Cohort Analysis tracks groups of customers by their acquisition period to reveal how retention and spending evolve over time. It exposes dynamics that aggregate metrics hide — for example, whether newer cohorts retain worse than older ones, signaling deteriorating product-market fit. Cohort curves are the most honest view of whether a SaaS business is genuinely durable. See SaaSpocalypse 101.