Glossary / Definition
Cohort Analysis.
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.
Related terms
- Affiliate An individual or company that promotes products for a merchant in exchange for a commission.
- Affiliate Marketing A performance-based marketing strategy where affiliates earn commissions by promoting a merchant's products or services.
- Affiliate Network A platform that connects merchants with affiliates to facilitate affiliate marketing partnerships.
- Affiliate Program A system where a merchant rewards affiliates for driving traffic or sales through their marketing efforts.
- Commission The fee paid to an affiliate for generating a specific action, like a sale or lead.
- Click-Through Rate (CTR) The percentage of people who click on an affiliate link compared to those who view it.
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