How to Calculate Cohort Retention
What is Cohort Retention?
Tracks what percentage of customers from each signup cohort remain active over time. Measures product-market fit and customer satisfaction.
Step-by-Step Guide
- 1Group customers by signup month or year
- 2Track activity status in subsequent months
- 3Calculate % still active at each interval
- 4Graph cohort retention curves
- 5Compare across cohorts
Worked Examples
Input
100 start, 80 m1
Result
80% retention
Common Mistakes to Avoid
- ✕Not separating churn by reason (price, product, competition)
- ✕Assuming current retention continues unchanged
Frequently Asked Questions
What's healthy retention?
Week 4: 50% good, 75% excellent; Month 12: 30-50% good, 70%+ excellent depending on industry.
How do I improve retention?
Improve onboarding, increase feature adoption, solve core problems, and build community.
Ready to calculate? Try the free Cohort Retention Calculator
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