Decision$-$Making Context: This chapter discusses how business analysts can use analytics to dynamically segment the market in increasingly granular segments $($of similar customers$)$ to build fully customized products. One effective technique is cohort analysis. Cohorts are groups of people who share a common characteristic over time. Cohorts are used to tailor marketing efforts to customers with similar traits.

The fictitious Eagle Golf Company manufactures different types of customized golf products based on customer specifications. It has developed a new type of golf ball called MYOB $($Make Your Own Ball$).$ The balls are transparent and can have anything inside that the customer wants, such as flashing lights or team mascots. In this lab, we look at the future purchasing habits of a cohort, where the cohort is defined as customers who made their first purchase from Eagle Golf Company in the same month. Specifically, we will create a cohort analysis that shows what percentage of the cohort buys again from Eagle Golf during the rest of the year.