Fictional assignment
Compare fictional subscription cohorts for Larch Learning.
Each cohort has its original subscriber count and cancellations in months one to three. Calculate retained subscribers and cumulative churn by month three. Recommend the cohort to investigate first, based on the highest cumulative churn rate.
All records and amounts are fictional practice data. Deliver the completed workbook and a formula-based answer that updates when the inputs change.
A cohort follows the same starting group over time. New signups belong to another cohort and shouldn't inflate the denominator of an existing group's retention rate. In this case the cancellation counts are disjoint monthly events among the original subscribers.
Subtract the three monthly cancellation counts from the starting cohort to find retained subscribers. Divide by the original count to get retention. Churn is one minus retention, or cumulative cancellations divided by that same original count. A large number of cancellations can still represent a smaller rate in a large cohort. The recommendation therefore uses the rate, with a lookup back to the cohort label. All subscriber records are fictional and contain no customer information.