With revenue & customer insights, you can track churn cohorts. Churn cohorts reveals crucial insights into customer retention, pinpointing the factors that drive customer loss. A churn cohort consists of customers who started using your product or service during the same period, tracked for churn within that group.

Here’s why tracking churn cohorts is essential:

1. Identifying patterns and trends: tracking churn cohorts uncovers patterns in customer departures. For instance, if churn spikes after three months, it may signal issues with onboarding, product usage, or customer satisfaction.
2. Understanding the customer lifecycle: churn cohorts clarify when customers are most likely to leave – whether within the first few months, after a year, or at another stage.
3. Segmenting by customer type: cohort analysis enables segmentation by acquisition channel, geography, demographics, or product usage. This lets you pinpoint which customer types are more likely to churn, allowing for more focused retention efforts.
4. Assessing the impact of changes: when changes are made – new product features, pricing, or customer support – churn cohorts help assess their impact. A drop in churn after a new feature suggests success, while an increase in churn signals areas that need attention.
5. Improving customer lifetime value (CLV): tracking churn cohorts is vital for improving CLV. Understanding when customers are likely to leave helps you lengthen relationships and reduce churn.