Intro to cohort analysis in Python

This text discusses a methodology for analyzing customer retention and churn using cohort analysis. It explains how to define cohorts, which are groups of customers who share something in common (in this case, the month of their first purchase). The text then demonstrates how to use these cohorts to ask more specific questions about customer behavior after they've started shopping with an online clothing store. The tutorial includes importing necessary packages and data from Kaggle, performing exploratory data analysis (EDA), creating cohorts based on the first purchase date, aggregating data for each cohort and order month, pivoting data to create retention matrices, and visualizing these matrices. The final section discusses how to interpret the relative and absolute retention matrices, as well as line charts comparing different cohorts' activities over time. The text concludes by emphasizing that this methodology can be easily adapted for analyzing other metrics or time periods, making it a versatile tool for understanding customer behavior in various contexts.