Creating a layer cake cohort analysis

Cohort analysis enables you to observe how a specific group of customers evolves over time. In this article, we’ll create a layer cake (stacked) cohort analysis to see trends in subscriber acquisition and retention.

Before you begin

Comparing customer cohorts by month

Create a cohort analysis of customers who subscribed in 2023, grouping them by month:

  1. Go to Subscribers.
  2. Create a segment for January 2023 using the filter Customer since - is within - 2023-01-01 to 2023-01-31. Save the segment as January 2023.
  3. Repeat step 2 for each remaining month of 2023.
  4. Click the Line and Stack   buttons to display the cohorts as a layer cake chart.
    Screenshot of the chart display options highlighting the location of the Line and Stack buttons.

The result should look like this.


In this example, we can see:

  • User acquisition was low in the first quarter but improved as the year progressed.
  • After high acquisition between August and October, there was a dip in new subscribers by the end of the year.
  • Customer retention was consistently high in all cohorts.

Screenshot of a layer cake chart showing customers who subscribed in subsequent months of 2023.

Next steps

  • Apply the same segments to the MRR chart to analyze MRR retention of each cohort. Review the account size of customers who cancel to help narrow down the causes of churn.
  • Compare the same cohorts by plan to see if any particular plan shows a higher acquisition rate or likelihood of churn. Sales and marketing teams can use this knowledge to double down on their efforts to promote the best-performing plan.

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