Cohort analysis
Cohort analysis is like taking a bunch of friends that all have something in common, like being born in the same year, and watching how they grow up and change over time.
For example, let's say there are 10 kids born in 2010. We would call them the "2010 cohort". If we were to track them over the years and see how they do in school, what kind of hobbies they have, and what jobs they end up with, that would be a cohort analysis.
We can also use this idea for businesses. For example, a company can look at all the customers who signed up in January and see how much they spent over time. They can compare it to the people who signed up in February or March, and see if those customers spend more or less.
So, just like watching a group of friends grow up together, cohort analysis helps us track how groups of people or customers change or behave over time.
For example, let's say there are 10 kids born in 2010. We would call them the "2010 cohort". If we were to track them over the years and see how they do in school, what kind of hobbies they have, and what jobs they end up with, that would be a cohort analysis.
We can also use this idea for businesses. For example, a company can look at all the customers who signed up in January and see how much they spent over time. They can compare it to the people who signed up in February or March, and see if those customers spend more or less.
So, just like watching a group of friends grow up together, cohort analysis helps us track how groups of people or customers change or behave over time.
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