Retention rate over a 12 month period for subscriptions that activated in a particular month.
Explanation of metric
This is a great way to understand how a cohort of customers evolve over a 12-month period from a customer count perspective.
How it's measured
If a group of 100 customers activated in a month (say Jan 2017), and 90 of them continued to stay with you by Dec 2017, that implies 90% retention. Retention rate closer to 100% is great.
It’s hard to track this just for paying customers because some start as free plan customers, but convert to paid plans during the first 12 months. Be mindful of the noise created by a large number of free plan customers if you have a freemium model. When your cancellations are on the rise, this is your go-to cohort which will help you look at the change in your subscriptions over the months and when your customers canceled their subscription. This information helps you connect the dots in terms of the changes you might have brought in Look at this in conjunction with the MRR retention cohort, which tells how did the MRR from this cohort evolve over the 12 months.
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