What is cohort analysis?
A cohort is a group of users, who have a common identifier such as region, app download date, or making an IAP. Cohort analysis lets you view the full lifecycle of your users to monitor lifetime value (LTV), ROI, and engagement by the cohort, or the chosen common identifier.
Why is cohort analysis important?
Using a cohort analysis to analyze user behavior, developers can look at how key KPIs such as retention rate and LTV change over time within a specific subset of users. This helps you to:
- Compare and manipulate the data easily, while looking at the metrics that matter to your business.
- Make informed, data-based decisions on your user acquisition, engagement and monetization strategies.
- Understand what improvements and optimizations are yielding the best results, reducing the amount of guesswork involved.
How can I benefit from cohort analysis?
Within the MAX dashboard, we show metrics including retention rate, engagement rate, and revenue per install, tracked over time within cohorts for all users.
An example of how this could be used: A developer is promoting and running a successful waterfall A/B test in which he tested the incrementality of new bidders or a brand new network partner. By using cohort analysis he’s now able to track the improvement in the cohort’s LTV and increase in his bids on UA to give him more scale. This granular-level data ensures that money being spent on advertising drives real growth for his studio.
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