6 Crucial Questions Answered About Cohort Analysis For App Monetization

feel-the-pulse-of-app-users- cohort analysis

WISH to get your apps right under the users’ nose?

Aha! Okay! That’s something that app marketers CAN GUARANTEE you with.

But then, if you also WISH that he downloads the app the very moment he peers at it?

Aha! Sorry! That’s something that app marketers CAN’T GUARANTEE you with.

Yea..”Only if WISHES were horses –”

Can I be brutally honest with you for a moment?

Right then, prompting users to download the app the very moment he or she sees it, is a formidable challenge these days, considering there are bazillion apps jostling for user attention. And what with each app appearing better than the other?

Yes, the app space is brutal, ugly and unexpected. So, where does this leave the app marketers?

As a matter of fact, it’s a normal thing for the app marketers, not to mention the app publishers and the app developers, to wallow in the tensions, the expectations, the temporary relief and the mounting tension again, that only intensifies all the time once the app is launched.

The question, why app downloads are not picking up, does not allow them to sit tight, or for that matter sleep tight.

Well, to lighten up their worries, they might turn towards tuning and fine-tuning their app marketing strategies, now and then, just to ensure that their user engagement and app monetization strategies are right in the first place.

Enter Cohort Analysis. It’s not something that should stop any app marketer dead in their tracks. But, as an app marketer or as an app publisher, if you wish to make your app advertising and app monetization efforts complete, go ahead and embrace Cohort. It would do your apps a world of good. Hope, I am making myself plain here?

In fact, most of the marketers and publishers, in all probability, are already employing this strategy since quite some time now. But, for those of whom, who are hearing it for the first time, here’s a brief write-up on the same to give you some hang of it.

 1] Cohort? How Did The Concept Come About?

roman legions - cohort analysis

Roman legions consisted of ten cohorts, and had 480 men each

The cohort were a tactical unit of The Roman Legions (killing machines) governed by statesman and Roman General Gaius Marius in 107 BC. In those days, a Roman legion consisted of ten cohorts, and had 480 men each. Today, the term is used to distinguish between different groups of consumers. Once the group is segregated, the next step is to influence them to spend on things that they might not feel like spending on in the first place.

2] What is Cohort Analysis?

In the strictest definition, the cohort consists a group of people who share common characteristics over a period of time. For example, let’s look at the babies who were born in 2000. All these babies have become teenagers now and are perhaps gearing up to enter high school this year. Now, this group of students can be referred to as cohort: the students who were born in 2000 and preparing to enter high school this fall.


Yet another example to give you a better idea:

If you have 2000 app downloads on January 15th, 2015, then all these app downloaders become part of the January 15th, 2015 cohort, as well as the 3rd week of January cohort, and the January cohort.

Yes, of course, the users can be part of many other cohorts, but it’s more often based on the date they were first acquired.

3] Why Cohort Analysis is Crucial for Apps?

In mobile analytics, cohort analytics is one of the finest tools to track users with common character traits over a period of time. Cohorts, might as well, be based on other factors, but more than anything, it groups users on the basis of days, weeks, or months.

In the wake of app business burgeoning like never before, app marketers are becoming more and more serious about user retention and engagement strategies. Cohort, for one, gives them in-depth insights of user behavior, which could be used to chart out workable action strategies, which in turn, could give shape to your app monetization methods.

To cut to the chase, understanding user behavior is to the key to acquiring, converting and retaining app users. And, this practically forms the kernel of cohort analysis.

4] How to Employ Cohort Analysis in App Monetization?

No two users are the same. Despite this, if you try to combine two diametrically different users, remember, you are harming your app monetization goals in an enormous way.

Cohort analysis could be the best way out. Under this, users will be assigned to a specific cohort after synchronizing their spending habits and activities within the app. This will help you whittle down to those groups that spends the most during a certain period of time and those that suddenly stop spending. That’s how Cohort Analysis could come handy.

a] To Accelerate In-app Purchases (IAP)

For instance, you may have launched a new in-app purchasing campaign for your apps. For the first few days, the downloads were jolly good. But then on the sixth day, things went topsy-turvy. Your IAPs were going downhill all of sudden.

By using the cohort analysis tool, you can easily put your finger on to the reasons that might have heralded the ruin of your IAP strategies. And, once you have done that, you can easily follow it up with some useful damage-control strategies, such as IAP discounts and similar things, which will ensure that your IAP won’t face a similar fate in the future, in case you decide to relaunch it.

b] To Close the Gap Between Growth and Engagement Metrics

Cohort analysis also helps measure growth metrics and engagements metrics accurately. Sometimes, it may happen that your app has received awesome downloads and all, but then you fail to focus on the fact that the users are not really engaging with your app once they have downloaded it.

Now this is not a good thing for your app perse. Yes, Cohort analysis has a solution to this problem as well. It helps, classify your audience on a weekly or monthly basis. In fact, cohort helps you come up with specific inferences like lapsed users or dabblers who signed up in January, or who signed up in March and so on. This will help you tweak your existing marketing strategies and then re-run your app campaigns successfully. For instance, for lapsed users you can send push notifications about new features or free coins to get them back to your app, for dabblers you can drive them deeper into the app by sending them push notifications about the app’s interesting features. Such notifications may inspire them to re-open the app.

Jabong_Push Notification

Jabong’s push notification message for Lapsed Users and Dabblers

c] To Engage Frequent/ Loyal Users

Some users engage with your app for long and frequent durations. You can identify such groups with the help of cohort analytics tool as well. The good thing that comes out of it is that you can send them personalized in-app content to reward them for their loyalty, and if possible, ask them to rate your app as well. In all probability, they will do it, for they might turn out to be your die-hard fans.

myntra-Loyal users

Myntra App has been trying its best to lure its loyal customers, who left their cart half way, via this email marketing campaign. The subject line marked here in red reads: We’re sorry, but we can’t keep these prices forever.

d] To Target Game Enthusiasts

It often happens that players get perpetually stuck while playing games, and then they drop the game totally, considering the rising difficulty level. Even such players can be tracked down with cohort analytic tool. And, once you have tracked them down, you can send them a helpful messages, or discount notifications to get them back to the game and to the next level.

Face book_notification for game app

Pirate King helps gamers send notification messages on their friend’s Facebook page inviting them to join the game

e] To Track Down New Users:

You can easily track down new users of your app with this strategy. As in, those users who have downloaded your app within last few days, but still haven’t done much with your app. On finding such users, you can treat them with welcome or reminder messages.

5] What Precautions Should You Take While Undertaking Cohort Analysis?

Employ only accurate data. As in, data that’s clean and up to date. Inaccurate data will give you misleading results

Start small. As in select data that’s relevant. You could add more data along the way.

Look for loopholes and outliers. This could be looked at both ways. It could be a sign that something has gone wrong with your data, or it could be other way round as well; a sign that it’s something of value has cropped up and that you need to really, really focus upon.

6] What are the Different Cohort Analytic Tools Available for Apps?

 Final Thoughts:

If you wish to customize your marketing strategies, advertising campaigns and all, and then wish to time it in such a way that it maximizes user downloads, adopt cohort full-on. If you have any second opinion on this, do share it the comment box below.

OpenXcell is a market leader in app development and app marketing. So, if in case you are pursuing any serious app development and marketing plans for your organization, OpenXcell will be happy to help. We have the experience and wherewithal to make your app a super-duper success.

AppN2O Mobile App Marketing Company


Well, folks, Appy Times are here. Though I am no appoholic, I am in an industry that breathes apps. So, despite myself, I keep waking up to smokin’ hot cuppa of app stories every day. So, do you like what I prattle here? Duh! Of course, you do. So just go ahead and scribble a line or 2 here in the comment box below, or share them on social media. Why? Because it will load me with just enough confidence to prattle a li'l (lot) more :) - https://www.openxcell.com/mobile-app-development/

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