Cohort analysis offers an aggregate view of how a group of customers or revenue evolves over time, and provides visualization of your churn specific to a certain group. We find cohort analysis specifically helpful to answer the questions such as:
- How long after signing up is a customer most likely to churn?
- Does churn increase when we make product changes?
- After how long does churn start to stabilize?
You can find Cohort Analysis in ProfitWell by going into "Revenue Trends" -> "Retention" -> "Cohort Report".
This is particularly helpful as it reveal useful information such as the weakest link in your retention, such as "during Month 12 is when customers are most likely to churn".At the end of the page, we also offer weighted average and customizable settings for more in-depth analysis over a chosen time period, revenue, customer counts, and view in percentage or total value.