Article · 12 min read

How to Conduct Churn Rate Cohort Analysis to Improve Retention

Shaoli Paul · Chargebee Free Intermediate

Walks through building the cohort table itself, and separates acquisition cohorts from behavioural cohorts, which is the distinction that turns cohort analysis from a pretty chart into a diagnosis.

  • Cohort curves showed significant churn landing at months four to six, not in the first weeks.
  • One worked cohort: 65 percent of March 2022 subscribers were still paying five months later.
  • Keep customer lifetime value at least three times customer acquisition cost.
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It answers 4 questions

  1. How do I build a customer health score that actually predicts churn?
  2. How do I work out why customers are actually churning instead of guessing?
  3. Our churn got noticeably worse this year. How do I run the fix as a leader?
  4. How do the best teams learn from churn instead of just reporting it?

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