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Startups & Venture Capital

Cohort Analysis

Also called: cohorts, retention curve, cohort retention

Cohort analysis groups customers by when they joined and tracks each group separately over time. It's the antidote to aggregate metrics: total revenue growing can hide every cohort churning faster than the last, with new sales masking a deteriorating product. A retention curve that flattens rather than decaying to zero is the clearest quantitative evidence of product-market fit.

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