Cohort Analysis is done by companies to get a better understanding of the behaviour of customers or users. Cohort refers to a group of people in a study that share some common characteristics such as the same date, week, month or year of acquisition by the company. (cohort is based on the same month of purchase from the retail store with customer retention rate denoted by the color intensity and average customer lifetime values specified in the rectangular boxes)
It depicts the company or a products ability to retain its customer over some specified period. Customer retention initiates with the first contact of an organization with the customer and continues through the entire lifetime of the services. (cohort is based on the same month of purchase from the retail store with customer retention rate denoted by the color intensity and corresponding values specified in the rectangular boxes)
is the net value of profit a customer has generated. It is an important metrics which is taken into account while making the decision regarding marketing, sales, products and customer support. (cohort is based on the same month of purchase from the retail store with customer lifetime values denoted by the color intensity and corresponding values specified in the rectangular boxes)
Dataset: http://archive.ics.uci.edu/ml/datasets/Online+Retail#