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Quiz Answer to:

20

Cohort Analysis

Cohort Analysis

Q)

You’ve just launched a new product, and you want to measure how effective your acquisition strategies are over time. Describe how you would use cohort analysis to track user retention, and what metrics you would focus on to determine if your marketing efforts are improving the product's stickiness.

Short Answer:

Use cohort analysis to track user retention over time. Segment users by acquisition date or behavior and measure how each cohort performs in terms of engagement and retention. Analyze metrics like Day 1, Day 7, and Day 30 retention to identify when users are dropping off. Use these insights to refine marketing efforts, optimize onboarding, and enhance product features to improve retention and increase customer lifetime value (LTV).

Detailed Answer:

Key Steps to Conduct Cohort Analysis

  1. Define Cohorts:

    • Cohort by Acquisition Date: Group users based on the time they signed up or started using the product (e.g., weekly or monthly cohorts). This allows you to track the retention behavior of users acquired during different marketing campaigns or product launch phases.

    • Behavior-Based Cohorts: Segment users by key actions, such as completing onboarding, using a specific feature, or making a purchase. This provides insight into how product engagement affects retention rates.

  2. Track Retention Over Time:

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