Churn Cohort

Churn measured by cohort to avoid misleading period-over-period comparisons.

Definition

Churn cohort is churn measured for a specific signup or start-date cohort, rather than the whole customer base.

Why it matters

Cohort churn shows whether retention is improving or worsening over time. It removes the noise of mixed customer ages.

Pricing implications

Pricing or packaging changes can improve churn for new cohorts even if the overall churn rate looks flat. Cohort analysis helps you see those changes earlier.

Measurement tips

Track churn by cohort month and plan to identify which cohorts benefit from pricing changes.

Checklist

  • Define cohorts by start month or plan.
  • Track churn by cohort age (month 1, month 2, month 3).
  • Separate logo churn and revenue churn.
  • Compare cohorts before and after pricing changes.
  • Avoid mixing trial and paid cohorts.
  • Use consistent churn definitions across reports.
  • Highlight cohorts with unusually high churn.
  • Use cohort curves in pricing reviews.