Cohort Analysis - MRR

Monthly recurring revenue is the most important metric for our business.

I think it's important to look at the steps that lead to that goal, at the user level-

  1. User lands on landing page
  2. User browses site
  3. User signs up for trial
  4. User converts to paid subscription

As of right now, I am setting up mix panel to handle on this, to really dig deep into user engagement and cohort analysis to see if there's a bottleneck somewhere in those steps and why certain users, or groups of users, make it through the steps and why some don't. 

For this assignment, I will be looking at-

  1. The number of days before first purchase
  2. Churn
  3. Cohort vs. MRR


Update - 11/01/2012

So, I realized I made a mistake in my data model, so I took a look at some updated data and found these results. This shows churn and can be used to calculate MRR. I also found that the average decrease is about 2% after the huge drop off in month 1, so this data can be used for forecasting.


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