SaaS Cohort Analysis Model

Description
Cohort analyses can be extremely useful when wanting to better understand a product’s usage and are very much essential when wanting to evaluate churn, customer lifetime and customer lifetime value in your SaaS business.

Startup founders have become increasingly aware of the importance of cohort analyses recently, partly because there is a growing amount of literature on it, with thought leaders such as David Skok contributing, and partly because the process has been simplified with web analytic tools such as MixPanel and KissMetrics.

However, cohort analysis is still a source of confusion for many founders, either due to data collection problems or how to interpret the results. This simple cohort analysis is therefore intended to help those early-stage SaaS startups that are still struggling.

By entering the basic cohort data, i.e. how many customers were acquired per month, and how many were retained in the subsequent month, your figures will be automatically calculated. By entering the corresponding revenue numbers, you will also be able to see your churn on an MRR basis, and gain a view of your CLTV.

- Christophe Janz, www.christophjanz.blogspot.com