Definition
A retention curve is a chart of retention over time, showing how many customers stay active by cohort age.
Why it matters
Retention curves reveal whether churn happens early or later. They help you see if pricing changes improve long-term stickiness.
Pricing implications
If the curve drops sharply early, your entry pricing or onboarding may be misaligned. If it flattens later, premium tiers or add-ons may be working.
Measurement tips
Plot retention by cohort month and by plan to detect segment-specific issues.
Checklist
- Use consistent time windows (weekly or monthly).
- Separate logo and revenue retention curves.
- Compare cohorts before and after pricing changes.
- Look for early drops vs long tails.
- Segment by plan and channel.
- Use the curve to validate activation improvements.
- Track retention at key milestones (month 1, month 3, month 6).
- Share curves with product and finance.