Cohort analysis is an effective data analysis approach that unites people with a common experience or characteristic, giving organizations insights into how those people's behavior has changed over time. By monitoring cohort performance, identifying successful cohorts, and determining the variables that contributed to their success, it helps businesses to understand customer behavior or user retention. Businesses may make smart decisions, create strategies for increasing customer retention, and reduce churn by analyzing the performance of various cohorts. A useful technique for making data-driven decisions and enhancing business outcomes is cohort analysis.