Cohort analysis is a powerful tool for understanding customer behavior, particularly in the context of an online clothing store. By defining cohorts based on the month of a customer's first purchase, one can track customer retention and identify patterns in purchasing behavior over time. The analysis involves importing necessary data and performing exploratory data analysis to calculate the number of orders per customer, revealing that a significant portion of customers make multiple purchases. The data is then organized into cohorts, with each cohort's purchasing activity tracked over subsequent months to form retention matrices. These matrices provide insights into relative and absolute retention rates, highlighting differences in customer engagement across cohorts and identifying periods of increased purchasing activity, such as during holiday shopping. Visualizations of these matrices allow for a detailed comparison of cohort behavior, revealing trends such as a higher retention rate in the December cohort compared to others. Through cohort analysis, businesses can gain valuable insights into customer retention and behavior, enabling them to tailor their strategies accordingly.