Overview
Total revenue grew 25% year over year. The board is satisfied. But cohort analysis reveals: the January cohort retained 72% of revenue at month 12. The July cohort retained only 58%. The October cohort is tracking toward 48%. Revenue growth is masking retention decay — newer customers are less valuable than older ones, and the business is running faster just to stay in place.
Cohort Revenue Analysis decomposes total revenue into its vintage components — tracking how each monthly acquisition cohort generates revenue over time, building retention curves that reveal whether customer quality is improving or deteriorating, and calculating cohort-specific LTV to determine what the business can afford to spend acquiring each customer segment.
What you get: - Monthly cohort retention curves (revenue retained over time) - Cohort-specific LTV calculation with projection - Vintage comparison (are newer cohorts better or worse?) - Revenue decomposition (how much comes from which cohort?) - LTV/CAC ratio by acquisition channel and cohort - Cohort-based financial forecasting
Built for: subscription and recurring revenue businesses where total revenue growth hides retention trends — where knowing that the October cohort retains 20% less than January changes acquisition strategy, pricing, and financial projections.