[FREE] Cohort Analysis Template

This is the excel I use to model cohort analysis for my businesses.

A couple notes:
1. Bottoms up build from the individual customer level helps you understand your business from the fundamentals.

Which sales reps are most effective?

Which types of customers are churning?

Can I preempt any churn via pattern recognition?

Which customers are the high ticket customers I should focus resources on?

You want to be proactive in client management - not reactive. And looking at the data from the individual level is how you do so.

2. The important metrics you should focus on are:

>Ticket size: How much money is this customer bringing in? What is the average ticket size across customers? Where are opportunities to increase the ticket size? Answer could lie in new products to cross sell, better pricing strategy, etc.

>Upsell: How much more revenue per user am I getting on a X time period basis? Can my sales team do a better job here?

>Gross Churn: Total percentage of customers who cancel their subscriptions within a given period. If revenue is increasing but many customers are canceling, you may have a leaky bucket issue.

>Net Churn: Percentage of customers who cancel their subscriptions within a given period, adjusted for the number of new customers acquired. Helps paint a clearer picture of customer acquisition.

>Revenue net retention: Percentage of recurring revenue retained from existing customers over a given period, including upgrades, downgrades, and cancellations. Important because it reflects the company's ability to grow revenue from its existing customer base

>LTV / CAC: Ratio that compares the total revenue a customer generates during their lifetime to the cost of acquiring that customer. Usually 3x is the benchmark.