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Financial modeling

Cohort Analysis

Cohort analysis groups customers by when they started (the customers who signed in January, the ones who signed in February) and tracks each group’s retention and expansion separately instead of averaging everyone into one blended number. Blended metrics can hold steady even while the newest cohorts are behaving very differently from the oldest ones.

It is the difference between knowing that net revenue retention moved and knowing which cohort moved it. See net revenue retention for the blended metric cohort analysis breaks apart.

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