Glossary
Cohort retention
The percentage of customers who joined in the same period (usually month) that are still active N months later.
Cohort retention answers "of the customers who signed up in March, how many are still here in June?" It separates real product-market fit from top-of-funnel noise. A cohort curve that flattens out after month 3 — with the flat level above 60% — is a healthy sign. A curve that keeps declining means your product has not found its long-term value yet.
Formula
cohort_retention(n) = active_subscribers_from_cohort_at_month_n / cohort_size_at_month_0
Worked example
March 2025 sign-ups = 100 customers. In June 2025, 65 are still active. Three-month cohort retention = 65 / 100 = 65%.
Related terms
- Churn rate- The percentage of subscribers who cancel in a given period. Usually reported as a monthly percentage.
- Net revenue retention- Revenue from the cohort at the end of the period divided by revenue from the same cohort at the start. Includes expansion + churn.
Related reading
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