Guide to:
Using Cohort Analysis to Find Your Churn Type
Conducting your own churn analysis is one of the most important steps to gaining control over your churn. Here we explain how and provide a downloadable spreadsheet template to help you below.
The key to determining your churn type is to track customer churn by "cohort" which is the group of customers who started in the same month. Each month you calculate the percent of the cohort that remains. Older cohorts will have more months of data. The table looks like this:
Cohort Churn Analysis
After that, you simply make a line graph for your cohorts, or for the average of all the cohorts as below:
Note that you'll need more months of data if you have annual subscription contracts where most churn is visible only beyond the first 12 months.
Find your churn type now with our downloadable templates:
Note: This simple template allows you to calculate 12 months of cohort data for up to 12 cohorts. However, it can be easily expanded for additional cohorts and more months of data.