Cohort analysis

Tracking customers by the period they arrived to analyze retention, churn and value. Compare cohorts at equivalent time since acquisition, using consistent metrics and observation windows.

Cohort analysis in round numbers

Hypothetical: compare customers acquired in 2020 and 2023 over the first four quarters after each cohort’s acquisition. One cohort’s stronger retention can mask the other’s weakness in a blended metric; compare matched tenure rather than unequal customer ages.

Cohort retention

Cohort retention is one application of cohort analysis, not a synonym for the entire analytical method.

Recurring revenue · Customer acquisition cost · Unit economics · Machine learning (ML) · All of the glossary