September 23, 2021

Big Data

Subscription Business Model Cohort Analysis for Retention Rate, ARPU, CAC, CLV

If you are running a subscription business model, whatever there is a similar model like yours or there is no model like it on the internet. Understanding your customer feedback about your product and service is critical because these data and insight highly reflect the trend of granular revenue and profit forecasting in this business. And with the domino effect, directly impacts your decision of branding and marketing options from paid to social and email drive sales and customer advocate. In the coming years, I believe if all the positive P&L results from actual performance and forecasts are coming up, all are thanks to this good beginning.

So the question is how to analyze the subscription business model performance. In this article, I would walk you through how to leverage cohort analysis that might be just in the Google Sheets, for the purpose to understand the subscription’s actual retention and churn rate performance. By the end of this piece, you can learn the beauty of cohort analysis for your subscription business, and deploy your marketing and sales strategy based on the analysis.