What does cohort analysis focus on?

Cohort analysis is a technique used in data analytics that specifically examines a group of individuals who share a common characteristic or experience within a defined time period. This characteristic might include factors such as the year of acquisition, the date of first purchase, or specific demographic traits. By focusing on this group, analysts can track how their behavior changes over time, which provides valuable insights into patterns, retention rates, and the lifespan of customer engagement.

This approach allows organizations to conduct a more granular analysis rather than looking at data in aggregate, making it possible to identify trends and behaviors that might not be apparent when analyzing the entire dataset. For example, a business may look at a cohort of customers who signed up in a particular month to see how their purchasing behavior evolves compared to cohorts from other months. This can lead to more tailored marketing strategies and improved customer retention strategies based on the unique behaviors of different groups.

In contrast, comparing distinct populations or focusing on individual data anomalies is not the primary goal of cohort analysis, and trends in overall data quality assess a broader spectrum of data integrity rather than specific group behaviors. Therefore, the focus on a defined group over time is what makes the first option correct in the context of cohort analysis.