Analytics
Definition
Cohort analysis tracks groups of customers who started at the same time (e.g., all customers signed in March 2025) and measures their behavior over subsequent periods. Cohort retention curves reveal whether newer cohorts retain better or worse than older ones — a critical signal for product-market fit trajectory.
Key points
- Cohorts defined by start period: monthly, quarterly, annual
- Retention curves plot % remaining over time
- Improving retention curve cohort-over-cohort = improving PMF
- Cohort revenue analysis reveals expansion patterns
Example
Jan 2025 cohort: 100 customers signed. Jan+6 months: 80 remain (80% retention). Jul 2025 cohort: 100 customers. Jul+6 months: 85 remain (85% retention). Newer cohort retains better — positive signal.
Stop stitching tools to track this
CRM, communications and operations share one database here, so the numbers this term describes are a dashboard rather than a spreadsheet.