We’re fluent in startup finance. Now you can be too.

Learn more about common financial (and startup) terms here. To learn more about Pilot, fill out the form below.

Oops! Something went wrong while submitting the form.
Glossary
  >  
Cohort Analysis

What is a Cohort Analysis?

Cohort analysis involves segmented populations based on a shared characteristic, such as customers who signed up for a service during the same month, to better analyze and understand trends. 

Investors and founders often use cohort analyses to understand product-market fit and customer experience. However, the metrics can vary depending on the type of business. 

For example, if you run a software as a service (SaaS) company, you might track each cohort’s annual recurring revenue (ARR), net churn, and gross churn. However, if you have an e-commerce site, you might track return rates, repeat purchase rates, and basket sizes.

It’s important to monitor these metrics over time to identify trends and outliers. Good or bad, a change in a new cohort’s behavior might give you insight into how recent decisions (or market conditions) could impact your business overall. 





Sign up for Pilot Bookkeeping

Signing up for Pilot is easy. We think once you experience truly stress-free financial processes, you won’t want to go back.

Oops! Something went wrong while submitting the form.
Close icon

Let's get in touch

Our experts can help you find the right solutions. Please provide a bit of information and we’ll be in touch.

Let's book a time to connect

Oops! Something went wrong while submitting the form.