Retention Cohort Benchmarks
Use cohort benchmarks to validate retention goals and pricing changes.
Quick checklist
- Define benchmark cohorts by segment.
- Track month-1 and month-3 retention.
- Compare NRR alongside retention curves.
- Use benchmarks to set pricing guardrails.
- Update benchmarks quarterly.
Step-by-step
- Select a baseline cohort with stable pricing.
- Plot retention and NRR over 6 months.
- Compare new cohorts to the baseline.
- Flag deviations after pricing changes.
- Adjust tiers or onboarding as needed.
What to watch
- Benchmarks drift after product changes.
- Over-indexing on averages hides segment risk.
- Retention and NRR can diverge.
Common mistakes
- Using different cohort definitions each month.
- Ignoring seasonality.
- Comparing new segments to legacy baselines.