Cohort Types 2025: Time-Based vs Segment-Ba...

Different cohort types answer different questions. Understanding when to use each approach improves analytical effectiveness.

Time-Based Cohorts

Group customers by signup date (monthly, quarterly). Best for tracking retention trends over time and identifying seasonal patterns.

Group customers by characteristics (plan type, industry, size). Best for understanding which segments perform best and why.

The most powerful analysis combines both: how does retention differ by segment AND how has it changed over time for each segment?

Use time-based for trend analysis and forecasting. Use segment-based for product and marketing decisions. Combine for strategic planning.

Start with time-based cohorts to establish baselines. Add segment-based analysis as you identify meaningful customer differences.

Track 12-24 monthly cohorts for trends, and 5-10 key segments. Too many cohorts creates noise without insight.

Both cohort types provide valuable insights. The best analysis uses time-based and segment-based approaches together for comprehensive understanding.