Cohort Analysis is a tool used in behavioral analytics to measure user retention and user life cycle management.
Refers to a group of individuals sharing statistical characteristics, for example, a group of people classified by age or, for example, a group of students in a classroom.
You can segment users together in different ways, be it geographical location, age groups, etc. Instead of grouping all users together as one unit, they are broken up into related groups called cohorts.
Cohort analysis allows you to find the highest or lowest cohorts by comparing their behavior and metrics over a period of time.
Once you have this data you can ask targeted questions regarding your product to make decisions that will reduce churn and optimize revenue generation.