Cohort analysis: a useful tool for mobile app analytics

Cohort analysis: a useful tool for mobile app analytics

Cohort analysis is one of the hottest topics in mobile app analytics right now and is a great way for marketers to stay updated on customer behavior within their mobile apps. Its potential application in mobile app marketing is obvious, but there are still usage issues on a regular basis. A cohort is a group of users who share some common criteria during a certain period of time.

Cohort analysis is an important measurement tool for identifying which segment is most profitable for your app. It enables you to see your data point improvements, discern behavior of new users from actual users, calculate average revenue per new user or actual user and compare results. Only by employing cohort analysis can you separate the wheat from the chaff.

Cohort analysis enables you to manipulate data related to trends expressed from your user lifespans. When you try to identify changes in user behavior from tweaking or optimizing your various channels and features, you’ll often find that the trends or changes are too weak to draw any conclusions. This usually occurs when your user base is varied with different levels of engagement and at different stages in a user lifespan. Your mobile users change over time. They will stay for a certain period of time and they generate different activity when they first start using the app then after a few weeks or months.

Cohorts give you the capability to track user segments from a specific time period. Engagement rates vary not just between different users but also between different stages of those users’ lifespans. Efforts at optimization, marketing, re-engagement, or product updates, will work better for some segments and not for others.

You can also test the effectiveness of different marketing campaigns to see which channels give you loyal, profitable users in the long run. You may have been able to improve the app for your longest-lasting users, perhaps those who use it most intensely – but is your focus to monetize those users or are you more concerned about growth?

By using an expanded cohort analysis, you can look at how these metrics change and move over time. Looking at how many users you retain from week to week, you can see at what point your users are keen to use the app or losing interest in it. Cohort analysis enables you to dig deeper and create much better segments out of your users. The only way of spotting trends in heaps of usage data is by respecting the lifetimes of those users. Only by doing that can you have a truly comparable base to optimize for growth.

Oles Dzyub,
Branded Content Manager at ComboApp