Learn All About Calculating Customer Retention Metrics including Customer Lifetime Value using Cohort Analysis in this Video by Eric Andrews
Topics Included in this Learning Video Include the Following
- 0:57 Explanation of customer cohort analysis data structure
- 4:11 Calculating customer retention by cohort
- 7:14 Revenue cohorts & net revenue retention (and net dollar retention)
- 10:14 Calculating cumulative lifetime revenue by cohort
- 12:00 Customer lifetime revenue
- 13:49 Calculating customer lifetime value by cohort & CAC: LTV Ratio Discussion
As mentioned and Explained by Eric Andrews :
- We learn the REAL way to calculate customer retention in the startup ecosystem – cohort analysis. We cover everything from user retention to net dollar retention to customer lifetime value and analyze customer retention using cohort analysis tables.
- The advantage of this method is that it works for all business models (subscription & non-subscription) to give a very exact view into the recurring purchase Behaviour of Customers.
- Cohortizing this data allows us to view the quantities and timing of recurring purchases. With this info, we can understand how much in marketing we can afford to spend in order to acquire one new customer (customer acquisition cost).
- You would Learn how to calculate venture capital KPIs like net revenue retention (net dollar retention), as well as the customer lifetime value (total lifetime gross profit from one customer) using our cohorts! Cohort Analysis tables tell the most important story of a company – the recurring purchase behaviour of customers.
- With this information, we can raise funding, invest in marketing, and scale with precision. By the end of this video, you will understand how to read and build customer retention reports using cohort analysis like a pro