Describe cohort analysis in simple terms.

Cohort analysis is a data analysis method that allows studying the behavior of groups of users (cohorts) united by some attribute and time, for example, by registration date or first purchase.

In simple terms, instead of looking at all users at once, cohort analysis divides them into groups to understand how their behavior changes over time. For example, you can see how many users who registered in January returned to the app after a week, a month, and so on.

This helps identify trends, such as how well new users are retained, how their activity changes, and what product changes influence these metrics.

Example: if 1000 users registered in January and 300 of them remained active after a month, and in February, out of 1200 registered users, 400 remained active, then you can compare these cohorts and understand that retention improved in February.