Cohort Analysis Calculator

What is Cohort Analysis?

Cohort analysis is a powerful behavioral analytics technique that groups users by shared characteristics and tracks their actions over time. Unlike aggregate metrics that can mask important trends, cohort analysis reveals patterns in user behavior, helping you understand retention, revenue, and engagement across different customer segments.

Types of Cohort Analysis

• Acquisition Cohorts: Group users by when they signed up or made their first purchase. This is the most common type, helping you track how retention changes over time.
• Behavioral Cohorts: Group users by specific actions they've taken, like completing onboarding, using a key feature, or reaching a spending threshold.
• Demographic Cohorts: Group users by characteristics like location, company size, industry, or plan type to understand which segments are most valuable.

Key Metrics to Track

• Retention Rate: Percentage of customers who remain active over time
• Churn Rate: Percentage of customers lost in a given period
• Customer Lifetime Value (LTV): Total revenue expected from a customer
• LTV:CAC Ratio: Compares customer value to acquisition cost (target 3:1 or higher)
• Payback Period: Time to recover customer acquisition cost

How to Improve Retention

• Optimize Onboarding: First 7 days are critical for long-term retention
• Identify Activation Events: Find actions that correlate with retention and drive users toward them
• Segment and Personalize: Tailor experiences for different cohorts
• Win-back Campaigns: Re-engage churning customers before they're lost
• Product Improvements: Use cohort data to prioritize features that improve retention