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What is Cohort analysis?

Definition, examples, and more

Definition

A method of analyzing user behavior by grouping users based on shared characteristics — most often the date they first installed or subscribed. This allows teams to compare retention, LTV, and monetization trends across cohorts over time.

How to Calculate

Cohort Retention Rate (Day N) = (Users from Cohort Active on Day N / Total Users in Cohort) x 100. For example, if 1,000 users installed in January and 340 are still active on Day 30, the Day 30 retention for the January cohort is 34%.

Example

A cooking app groups users by install week and tracks 30-day retention for each cohort. January Week 1 cohort retains at 25%, but after improving onboarding in February, the February Week 1 cohort retains at 34%. Cohort analysis proves the onboarding change worked — an insight hidden in aggregate retention data.

Why Cohort analysis Matters

Cohort analysis reveals whether your app is actually getting better or worse over time. A budgeting app saw that overall retention was flat at 28%, which seemed fine. But cohort analysis revealed a troubling trend: newer cohorts were retaining at 22% while older cohorts were at 35%. Without cohort-level visibility, they would have missed the declining quality of new users from a recent ad campaign change.

Frequently Asked Questions

What is the most important cohort to track for subscription apps?

The install-date cohort is foundational — it shows retention and monetization trends over time for each batch of new users. But also track subscription-start cohorts to measure renewal behavior, and acquisition-source cohorts to compare channel quality. Botsi makes it easy to view all three.

How far back should I track cohorts?

Track at least 12 months of cohort data to see full annual renewal patterns. For weekly cohorts, 3-6 months of data is usually sufficient to spot trends. The key milestones to watch are Day 1, Day 7, Day 30, Day 90, and Day 365 retention for each cohort.

What is a retention curve and how does it relate to cohort analysis?

A retention curve plots the percentage of a cohort that remains active over time. It typically drops steeply in the first few days, then flattens out. The shape tells you everything: a curve that stabilizes early means your core users are sticky; one that keeps declining means you have a leaky bucket. Compare retention curves across cohorts to see if product changes are working.

Category
Subscription App Terminology
Related Area
Mobile App Growth & Monetization

More terms starting with “C

Cancellation

The act of ending a subscription, either by the user or automatically due to billing failure. Understanding cancellation timing and reasons is key for designing retention strategies, deflection flows, and win-back campaigns.

Cancellation survey

A short feedback form presented during the cancellation process to understand why a user is choosing to leave. These insights inform product improvements, pricing strategy, and targeted win-back efforts.

Churn rate

The percentage of subscribers who cancel or do not renew their subscription over a given time period. Churn can be voluntary or involuntary and is a core metric for measuring retention health and forecasting revenue growth.

Click-through rate (CTR)

The ratio of users who click on a specific call-to-action (e.g., email link, push notification, paywall button) versus those who viewed it. CTR is a key engagement metric for evaluating creative performance and funnel effectiveness. Click-through-rate originated in the email and banner ad world, where everything was on a desktop. With mobile, some companies now call this same metric tap-through-rate since people are tapping on their phone vs clicking on desktop, but at the end of the day it's really the same type of measurement.

Content gating

The practice of limiting access to premium content — such as videos, lessons, or tools — behind a subscription paywall. Content can be fully locked (hard paywall) or partially accessible (soft paywall) depending on the monetization strategy.

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