Retention Cohorts

Definition ∞ Retention cohorts are groups of users or customers who begin using a product or service during a specific, shared timeframe. Analyzing these cohorts allows businesses to track how user engagement and activity evolve over time, providing valuable insights into product stickiness and the effectiveness of various strategies. By segmenting users based on their start date, organizations can identify trends in user behavior, measure the impact of updates, and optimize their offerings to maintain a loyal user base. This analytical method is critical for assessing long-term user value.
Context ∞ In the digital asset space, retention cohorts are a key metric for evaluating the sustained adoption and utility of cryptocurrency platforms, decentralized applications, and Web3 services. News or reports on user growth, platform activity, or the success of new features often reference cohort analysis to demonstrate continued user engagement. Monitoring retention trends provides valuable insight into the health and longevity of digital asset projects and their ability to maintain relevance in a competitive market.