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Cohort Analysis

Grouping customers by signup period and measuring retention, expansion or LTV over time.

In depth

The only honest way to measure retention. Blended monthly churn hides that Q1 cohorts might churn at 3% while Q4 cohorts churn at 8%. Cohort curves also expose whether product improvements are moving retention for new customers.

Related terms

Churn
The rate at which customers or revenue leave the business in a period.
LTV
Lifetime Value, the gross-profit-weighted expected revenue from a customer over their lifetime.
Activation Rate
% of new signups who complete the defined activation event within a defined window.
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