Cohort Analysis
A metric that moved has a cause. The failure mode here is supplying a story instead, and then acting on the story.
When to use
- Retention, ARPDAU, conversion or install volume moves.
- A change shipped and somebody wants to know whether it worked.
Steps
- Enumerate the candidates first. Read
economy-changesandeventsfor the window. Five things usually shipped that fortnight; a story that names one of them without checking the others is a guess. - Split by cohort, not by day. Install cohort, spend tier, platform, geography. An average across new and paying players describes neither.
- Check whether the mix changed. A metric moves when the population moves, and a UA campaign that brought in cheaper users moves everything at once without any product change at all. This is the single most common false alarm.
- Compare against the same cohort's prior period, not against the aggregate.
- Check the instrumentation. A change in a metric that coincides with a client release is a tracking question until ruled out.
- State the cause with its confidence — and say when the honest answer is that several changes are confounded and nothing can be attributed.
Output
A cause with the cohorts that show it, or an honest statement that the changes are confounded. The second is a legitimate and common result; reporting a confident cause instead is how a live game reacts to noise.