Cohort analysis enables you to observe how a specific group of customers evolves over time.
In this article, we’ll create a stacked layer cake cohort analysis to see trends in subscriber acquisition and retention.
Before you begin
- Get familiar with ChartMogul’s charts.
- Learn how to work with filters and segmentation.
- Read about cohort analysis.
Comparing customer cohorts by month
Create a cohort analysis of customers who subscribed in 2023, grouping them by month:
- Go to Subscribers.
- 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.
- Repeat step 2 for each remaining month of 2023.
- Click the Line and Stack buttons to display the cohorts as a layer cake chart.
The result should look like this.
Analysis
In this example, we can observe:
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Variance in cohort strength: Some cohorts show a stronger initial acquisition volume. This could be due to various factors like successful marketing campaigns, seasonality, or changing product-market fit.
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Sustained Acquisition and Retention: All cohorts appear to contribute consistently to subscriber growth and retention. This indicates that the company continues to attract new subscribers and retain them over time.
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.
Share your analysis
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