Unlock the Power Of Cohort Analysis
Analytics

Unlock the Power Of Cohort Analysis To Track Marketing Spend & Boost Revenue

Customer loyalty is fleeting and retaining them is an uphill battle. With cohort analysis, marketers can track & analyze customer behavior over time, by grouping them into segments based on shared characteristics so as to devise sure-fire retention strategies. In this blog post, we have covered everything you need to know about cohort analysis.

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Author:

Sameer_pawar Sameer Pawar Linkedin Logo

Date Published: 19th Apr 2023

Reviewed By:

Arpit_srivastva Arpit Srivastava

Published On: Apr 19, 2023 Updated On: Jun 25, 2025

Author

Sameer_pawar
Sameer Pawar
Director - Digital Marketing
Total 22 Years of experience. Still learning. Curious about Marketing, Technology, People, and Everything. Consistently helping organizations and businesses to achieve growth through paid and earned media.
Prefers to distill, rather than dilute. More emphasis on focus, when most tend to scatter. Loves to display critical thinking, rather than giving in to just what’s asked. Always comfortable operating with ambiguity and incompleteness, while all others chase perfection in implementation, processing, and reports.
Considers achievements as battle scars, much like a gladiator in the Colosseum.

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Frequently Asked Questions

Cohort analysis is a technique that allows marketers to track and analyze customer behavior over time by grouping customers into segments based on a shared characteristic, such as signup date, first purchase date, or location. It helps in gaining insights into customer retention, engagement, and overall lifetime value.

The three types of cohort analysis are time-based cohort analysis, behavior-based cohort analysis, and size-based cohort analysis. Time-based cohort analysis groups customers based on the time they signed up or made their first purchase. Behavior-based cohort analysis groups customers based on their actions and behavior, while size-based cohort analysis groups customers based on their company size.

Tracking marketing spend is crucial for B2B marketers to measure the effectiveness of their campaigns and optimize their budget allocation. It helps them understand which channels drive the most conversions and revenue, enabling them to adjust their strategy accordingly.

By using cohort analysis to track marketing spend, marketers can:
Understand customer behavior over time, aiding in assessing the impact of marketing campaigns on customer engagement and retention.
Identify trends and patterns in customer behavior that are not visible through other types of analysis.
Measure the return on investment (ROI) of marketing campaigns and optimize budget allocation for initiatives driving more conversions and revenue.

Certainly! Here are some real-life examples:
Dropbox used cohort analysis to optimize its referral program, resulting in increased referrals and revenue.
Airbnb employed cohort analysis to enhance its marketing spend by targeting customers most likely to become repeat customers.
HubSpot utilized cohort analysis to optimize its pricing strategy, increasing revenue per customer.
Starbucks employed cohort analysis to improve its loyalty program, resulting in increased customer loyalty and revenue.

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