The Customer Retention Rate cohort analysis reports the rate at which customers renew their subscriptions.
How is it calculated?
Customer Retention Rate = Customers who renewed / Total number of customers in cohort
For example, if you had 30 customers at the beginning of the month and 29 renewed their contracts at the end of the month your Customer Retention Rate would be 96.67%.
What analyses can be gained?
This cohort analysis is useful if you want to identify the factors that keep customers retained or find the 'danger' months in which a customer is more likely to cancel. You can segment this cohort analyses using the segmentation tools. For example, you can see if customers on a particular plan are more likely to renew their subscriptions.
Recommended reading: The Ultimate Cohort Analyses Cheat Sheet.