How-to: Cohorts & line graphs to predict LTV

Cut involuntary churn to just 1%.

10 min. read

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This quick, informative worksheet will teach you how to:

  • Build a cohort worksheet and conduct a corresponding analysis to forecast customer lifetime value (LTV)

  • Project LTV with a line chart to create a more robust ideal customer profile

  • Expertly use these data charts to analyze churn behaviors in your various audience segments

Analyze churn like a pro and get your involuntary churn rate down to just 1%.

For recurring revenue businesses, churn is one of the hottest topics–and for good reason. For subscription businesses, success is largely defined by the number of subscribers and how long these subscriber relationships last–in other words, are your subscribers churning at a high rate? Understanding why and when subscribers churn can make or break your subscription plans, and to fight churn effectively, there are several factors you need to analyze. It’s a systematic approach that requires subscriber data and the right tools to get to the bottom line.

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Download our worksheet on How-to: Cohorts & line graphs to predict LTV to start your cohort analysis.

If you’ve never conducted a cohort analysis, this worksheet will change that. Simply put, a cohort analysis is an incredibly useful way to analyze churn as it helps you uncover insights such as when subscribers are churning in their lifecycle. If done correctly, a cohort analysis allows you to identify your different segments of audiences and regularly test different ways to manage churn within each audience. From there, you can efficiently evaluate churn impact on each cohort and improve your churn management plan by reallocating your resources more strategically throughout the subscriber lifecycle.

Recurly knows the technical side of calculating churn. In fact, we’ve been working with subscription businesses of all sizes and industries for over a decade–we’ve exceeded 2,200 recurring revenue partners and counting. When it comes to analyzing churn and its impact on a business, Recurly can provide you with all the data you need with the right formulas to calculate churn rates correctly. In this worksheet, you’ll get a step-by-step breakdown of how to build a cohort worksheet, how to forecast LTV with a revenue matrix, and how to project LTV with an LTV line chart. 

Take churn matters into your own hands. Fill out the form above and download our easy guide on how to create cohorts and line graphs to predict LTV.

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