The cohort is a powerful analysis tool that helps you understand how your subscriptions have been evolving, with it you can create a timeline with different metrics.
We will use the following exercise as an example of a Cohort analysis of the subscriptions made month by month over a period of 6 months:
In the first row you will take into account the customers who subscribed in the first period, in the next row those who subscribed in the following period and so on until you reach the last period.
In the columns you place the number or percentage of clients that remain in the group as you reach the last period, in this way you end up generating a kind of staircase but in reverse.
The second table shows the evolution of customers by percentage over a period of the first 6 months of 2017, taking into account the customers who entered in January.
Period 0 represents the first month, i.e. January for these customers, in this case for that period we have 100 customers registered, but in the following period, February, we only have 95% of the 100 customers who entered in January.
So we continue with each of the periods, for the customers who entered in February, period 0 is February, period 1 is March and so on.
The Sales Glossary is a compendium of all the most commonly used terminology in sales strategy. Many of the concepts listed here are used when implementing a CRM system or a digital sales funnel, no matter if they are legacy systems or an online CRM. See also our blog that deals with sales techniques, marketing and sales culture.