Cohort

Group of customers sharing a start date or trait; used to measure retention and churn.

Definition

A cohort is a group of users or customers that share a common start date or attribute for analysis.

Why it matters

Cohort analysis reveals retention and expansion trends that averages can hide.

Pricing implications

Compare cohorts before and after pricing changes to see if churn or expansion improved.

Common cohort types

Signup month, first payment month, plan type, and acquisition channel.

Measurement tips

Keep definitions consistent and separate trial and paid cohorts to avoid mixing behaviors.

Checklist

  • Choose one cohort definition and stick to it.
  • Track retention and expansion by cohort month.
  • Compare cohorts around pricing changes.
  • Highlight cohorts with unusual churn.
  • Use cohort curves for experiments.
  • Separate free and paid cohorts.
  • Automate cohort reporting.
  • Review cohort health before price increases.