Cohort analysis is a popular form of analysis that helps marketers gain deep insights into their customers based on some common characteristics shared by a group. This means that instead of looking at customers individually or analyzing them all together, marketers first divide their customers into related groups called cohorts. They then study the consumption patterns of these cohorts to get specific insights into their behavior. These insights can then be used to run campaigns, promotions, or other marketing activities.

For example, a retailer wants to find out how many women who bought maternity products last year, bought child-care products this year. Based on the insights they want to run campaigns to target those who have not yet made the purchase.