How to Use Cohort Analysis to Understand Retention (And Predict Churn)
Cohort analysis is the most powerful analytics technique most teams aren't using. Here's how to set it up and interpret the results.
Aggregate metrics hide the truth. Your overall retention rate might be 85%, but if January's cohort retains at 90% and March's cohort retains at 70%, you have a problem that average metrics won't show.
Cohort analysis groups users by when they started and tracks their behavior over time. This reveals whether your product is getting better or worse at retaining users, which features correlate with retention, and when in the user lifecycle you lose the most people.
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We'll cover how to build cohort analysis in Kissmetrics and Google Sheets, the three types of cohort analysis (acquisition, behavioral, and segment), and how to use cohort data to predict churn before it happens. Plus, the retention benchmarks for B2B SaaS at each stage.
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