I. Introduction
- About Cohort Analysis
What is cohort and cohort analysis?
- A cohort is a group of users who share a common characteristic, and cohort analysis is a tool to measure their engagement over time.
- Cohort analysis helps to differentiate between actual improvements in user engagement and those that may be driven by growth,
while vanity indicators do not provide the same level of insight.
Three major types of Cohort
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Time cohorts: customers who signed up for a product or service during a particular time frame.
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Behavior cohorts: customers who purchased a product or subscribed to a service in the past.
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Size cohorts: refer to the various sizes of customers who purchase the company’s products or services.
Which type of cohort is for this project?
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I will focus on performing Cohort Analysis based on Time(Time cohorts).
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Customers will be divided into acquisition cohorts depending on the month of their first purchase.
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The cohort index would then be assigned to each of the customer’s purchases, which will represent the number of months since the first transaction.
- Business Questions
- Using Python to analyze transaction data from KPMG and creating a cohort that allows stakeholders to assess user engagement starting from their first transaction.
II. Data Visualization with Python
- MoM Retention Rate for Customer Transaction Data
