Cohort Retention


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What is Cohort Retention?

Cohort Retention is a measure of how many customers from a specific cohort, or group, continue to use a product or service over time.

Why is Cohort Retention important?

Cohort Retention is important because it provides insights into customer loyalty and product stickiness. It can help businesses understand which features or aspects of their product or service are driving long-term user engagement.

How is Cohort Retention calculated?

Cohort Retention is typically calculated by identifying a group of customers who started using a product or service at the same time and tracking what percentage of that group continues to use the product over time.

What is the formula for Cohort Retention?

The formula for Cohort Retention is:

(Number of Users from the Cohort Still Active / Total Number of Users in the Cohort) * 100

This gives you the Cohort Retention as a percentage.


🔥 Graphic of formula


How can Cohort Retention be improved?

Cohort Retention can be improved by enhancing product value, improving user experience, and building strong relationships with customers.

Can you provide an example of Cohort Retention?

Suppose you acquire 100 new users in January. By February, 85 of those users are still actively using your product. The Cohort Retention for the January cohort in February would be (85/100) * 100 = 85%.

What are the industry benchmarks for Cohort Retention?

Industry benchmarks for Cohort Retention can vary widely depending on the specific industry, product, and user base.

What factors can influence Cohort Retention?

Factors such as product quality, customer service, pricing, and market competition can influence Cohort Retention.

What are the potential pitfalls or misconceptions about Cohort Retention?

A common misconception about Cohort Retention is that it’s only a reflection of product quality. While product quality can certainly influence Cohort Retention, other factors like customer service and pricing can also play a significant role.

How often should Cohort Retention be tracked?

Cohort Retention should be tracked and reviewed regularly, often on a monthly or quarterly basis.

What tools can be used to measure Cohort Retention?

Many analytics tools like Mixpanel, Amplitude, and Google Analytics can be used to track Cohort Retention.

What are some related terms to Cohort Retention?

User Retention, Churn Rate, Customer Lifetime Value (CLTV)