Scope

What is Retained Revenue Cohort report?

What are the key summary metrics in the Retained Revenue Cohort report?

Summary

The Retained Revenue Cohort report is enabled for Chargebee Billing merchants who have Retained Revenue Impact reporting enabled. This report allows you to track how your sessions are driving downstream revenue, thus giving you a view into the revenue impact of your Deflection Funnel. Navigate to Chargebee Retention > Insights > Retained Revenue Cohort.

Solution

This report charts out your total deflects by time period (can be toggled between weekly, monthly, quarterly, and yearly), and then tracks the repurchase performance of these cohorts over time. The date period for the report will filter by the session start date, and the chart contains three main components: your summary metrics, your cohort table, and your total metrics. We will break down each further:

Cohort Summary Metrics

The first section of the cohort report presents key summary metrics to help you understand each cohort. Here we display the following:

• Deflects: count of deflects for the sessions starting during the given period 
• First-Time Repurchase Revenue: the sum of all the revenue that was generated from the first repurchase after a deflect
• First-Time Repurchase Rate: % of deflects that complete at least one repurchase order 

These metrics give you a quick snapshot of how your cohort is performing. Typically there will be a drop off between a deflect and a repurchase, which is represented in the First Time Repurchase Rate. For newer cohorts, this metric will start out low and increase as the cohort matures. 

Additionally, the First Time Repurchase Revenue allows you to see how much initial revenue a cohort generates. This can be an insightful number when compared with the total on the right-hand column to see how much of your cohort's revenue is from repeat purchases vs. first time. 

Cohort Table Metrics

Your cohort table metrics are the inside/colored cells in the table. These data points represent the total repurchase revenue that occurred in each subsequent period after the deflect. When looking at a monthly cohort and viewing the May cohort, Month 0 will be May, Month 1 will be June, Month 2 will be July, etc... This view allows you to track how your cohort drives downstream repurchases in each period after the initial deflection. The highest revenue periods will be shaded with the darkest green and the lowest white. This chart helps you track your customer's repurchase behavior and identify patterns in performance over time. 

Cohort Total Metrics

The final area in this report is the totals, which give you insight into the total amount of revenue generated in a given cohort or period after the session. The right-hand Y axis totals the sum of the horizontal cohort rows across. So for May, you will see the total revenue generated to date for the May cohort. This value will increase until 100% of the cohort has churned out. 

The X-axis totals the sum of the vertical cohort rows. So Month 0 is the sum of all retained revenue in the same month as the deflection, and Month 1 is the sum of all the first month after the deflection retained revenue. This allows you to see which months after the deflection generate the highest retained revenue. Typically Month 0 will not be the highest retained revenue month, as it takes some time for repurchases to occur. We typically see that Month 1 - Month 3 generate the highest retained revenue for a customer, but this can vary based on the billing frequency of your subscription model. 

Finally, the % of Deflects Still Paying represent the defects that have not been canceled/total deflects. This metric is static, meaning that at the end of a month, we snapshot the state of the subscription, and determine what % of those deflects are still active in the billing system. This value is then averaged over all the cohorts to represent the average we typically see for Month 1, Month 2, Month 3, etc... This metric allows you to see how many customers are still active x number of periods after the initial session, which indicates the potential for your cohort to produce additional Retained Revenue. 

If you have any questions on the Retained Revenue cohort please contact retention-support@chargebee.com.