Cohort Analysis Definition
A method of analyzing user behavior by grouping users based on shared characteristics or experiences.
Cohort analysis helps understand how different groups of affiliate-referred customers behave over time, including retention rates, lifetime value, and engagement patterns. This analysis provides insights for optimizing acquisition strategies.
By analyzing cohorts based on acquisition source, time period, or other characteristics, merchants can identify which affiliate channels produce the highest-quality customers and adjust commission structures accordingly.
Cohort analysis implementation involves segmenting users, tracking behavior over time, and comparing performance across different groups. This analysis helps predict future behavior and optimize long-term strategy.
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