We learn the REAL way to calculate customer retention in the startup ecosystem - cohort analysis. We cover everything from user retention to net dollar retention to customer lifetime value. Downloadable template included.

Download the Excel template: http://bit.ly/cohort_reten_mlchmp

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In this video, we learn about analyzing customer retention using cohort analysis tables.

The advantage of this method is that it works for all business models (subscription & non-subscription) to give a very exact view into the recurring purchase behavior of customers.

Sections:
0:57 explanation of customer cohort analysis data structure
4:11 calculating customer retention by cohort
7:14 revenue cohorts & net revenue retention (and net dollar retention)
10:14 calculating cumulative lifetime revenue by cohort
12:00 customer lifetime revenue
13:49 calculating customer lifetime value by cohort & CAC: LTV ratio discussion

Cohortizing this data allows us to view the quantities and timing of recurring purchases. With this info, we can understand how much in marketing we can afford to spend in order to acquire one new customer (customer acquisition cost).

We cover how to calculate venture capital KPIs like net revenue retention (net dollar retention), as well as the customer lifetime value (total lifetime gross profit from one customer) using our cohorts!

Long story short, cohort analysis tables tell the most important story of a company - the recurring purchase behavior of customers. With this information, we can raise funding, invest in marketing, and scale with precision.

By the end of this video, you will understand how to read and build customer retention reports using cohort analysis like a pro - I guarantee it!

If you have questions - leave a comment below and I'll try to help. Cheers!

#customerretention #cohortanalysis #startups