Cohort Retention Matrix

Generate age-aligned customer retention percentages for multiple cohorts.

Description

Cohort retention compares active customers with each cohort’s original size at matching cohort ages.

Cohort retention compares active customers with each cohort’s original size at matching cohort ages. Rows should represent cohorts and columns their ages.^[1]

Generate age-aligned customer retention percentages for multiple cohorts.

When to use Cohort Retention Matrix

Use this for the following task: Generate age-aligned customer retention percentages for multiple cohorts.

Prepare the scenario values in one currency and consistent time periods. Use fractions for fraction fields and percentage points for percent fields.

How to use Cohort Retention Matrix and understand its results

Prepare the scenario values in one currency and consistent time periods. Use fractions for fraction fields and percentage points for percent fields.
Enter cohortSizes, activeCountsByAge using the field table, then run the tool.
Read retentionPercent. Interpret flags, units, ordering and placeholder values using the rules below.
Review any reported issue or failed check, correct the supplied values when appropriate, and verify the result in its intended context.

Input field	Meaning	Value type and bounds	Requirement
cohortSizes	Cohort sizes	list of number; each entry: number	Required
activeCountsByAge	Active counts by age	list of list of number; each entry: list of number; each entry: number	Required

Require positive integer cohort sizes and a nonempty rectangular age-aligned count matrix with each cell between zero and its cohort size. Normalize rows by their original sizes.^[2]

retentionPercent[i,j]=100 activeCount[i,j]/cohortSize[i]

This summarizes the declared operation. Units, indexing, inclusivity and exceptional cases are explained in the surrounding text.

Output field	Meaning	Value type
retentionPercent	Retention percent	list of list of number

json

{
  "input": {
    "cohortSizes": [
      100,
      50
    ],
    "activeCountsByAge": [
      [
        100,
        80,
        60
      ],
      [
        50,
        40,
        30
      ]
    ]
  },
  "output": {
    "retentionPercent": [
      [
        100,
        80,
        60
      ],
      [
        100,
        80,
        60
      ]
    ]
  }
}

Limitations and assumptions

The tool does not construct cohorts or distinguish unobserved future ages from zero retention. Retention can rise with reactivation.

These outputs describe the supplied scenario; accounting definitions, capitalization terms and time periods must match the intended use. Malformed requests produce input errors. A successfully evaluated request can still contain false flags, empty result lists or a result outside the supplied threshold; those outcomes have the meanings stated above.

Alternative or Complementary methods

Choose Logo Revenue Churn for this operation: Compare customer-logo churn with revenue churn from the same starting cohort. For a complementary task, use Net Revenue Retention for this operation: Compute net revenue retention including expansion within the starting customer cohort.

Further background: Billing analytics dashboard.

References

Billing analytics dashboard — Stripe
Cohort Retention Matrix — tool.io

Similar or alternative tools

Logo Revenue Churn
Compare customer-logo churn with revenue churn from the same starting cohort.
Net Revenue Retention
Compute net revenue retention including expansion within the starting customer cohort.