Segmenting Users to Improve Retention and Lifetime Value
A cohort is a group of users who share similar traits, behaviors or usage criteria. Cohorts are commonly used in mobile advertising to improve user retention and lifetime value (LTV).
Examples of cohorts might include users who first installed an app during the first week in March or users who live in Spain and installed an app in the beginning of December. App marketers and attribution providers use cohort analysis to optimize ad campaigns, pinpointing which segments may be underperforming and where corrective action is needed.