Definition
Cohort retention measures retention for a specific cohort over time, such as customers who started in the same month.
Why it matters
Cohort retention shows whether retention is improving or worsening for newer cohorts, independent of base growth.
Pricing implications
Pricing or packaging changes can improve cohort retention even if overall churn looks flat. Cohort retention reveals those changes early.
Measurement tips
Plot retention curves by cohort month and segment.
Checklist
- Define cohorts by start month or plan.
- Track retention by cohort age (month 1, month 2, month 3).
- Separate logo and revenue retention.
- Compare cohorts before and after pricing changes.
- Avoid mixing trial and paid cohorts.
- Use consistent retention definitions.
- Identify cohorts with sharp early drops.
- Share cohort retention with product and finance.