Customer Cohort and Retention Analysis | How to Calculate Retention Rate

This video is part 2 in a series that shows you how to perform Customer Cohort, Retention, and Churn Analysis in Power BI.

In this video, you will learn how to create DAX measures and a retention matrix in power bi.

Chapters
0:00 Setup
2:00 Calculating number of active customers
3:25 Calculating the number of new customers/cohort size
11:55 Cohort Performance/Retained Customers
19:17 Formatting cohort matrix
24:18 Calculate retention rate
27:14 Creating dynamic metrics using field parameters
40:02 Retention Trendline
41:30 Outro
-----------------------------
Resources

Part 1

Connect with me:

[AbenezerTecha]

Thank you!
Linson, We can abbreviate the formula for Cohort performance like this: Cohort Performance =
VAR CohortDate = MIN(DimDate[Start of Month])
Return
CALCULATE(
[Active Customers],
REMOVEFILTERS(DimDate[Start of Month]),
DimCustomer[First Transaction Month]=CohortDate
)

[marcoschuurman]

Thanks so much for the thoughtful video series here. Definitely came in super handy when excel couldn't handle multi-column array calculations for 1M+ rows. Never thought I'd learn PowerBI at 10pm on a Monday but here we are

[nikitatimoshenko]

Thank you for the video, inspiring and full of useful insights!

[michaelcai]

Nice video again. When you overlay two tables it's indeed very pretty but when you're working with lots of data there's a scroll bar on both tables and they won't sync when you want to scroll downwards. Is there a way around it?

[soul]

Hello! Thank you for such a usefull video. I have a question: is that true to count retention trend this way? I mean, for example, when we talk about 24th month we see only "december 2009" cohort = 20% of retention rate. But on a trendline we see the % close to 0. That's because trendline calculate average between all cohort-months, even if they are not exist for 24th month. So, could you please answer, I'm not sure that this provide us the true results for business.

[Marcooow]

Thank you so much for this it is very helpful!! One question, when I make the matrix with my own data and put in the Cohort Performance measure every single field in the matrix just shows exactly the same number (the amount of customers in the first month). Do you have any idea why this might be? I havent been able to figure it out yet...

[hiteshjoshi]

Hello Linson Sir, I hope you doing well and thanks for the video. I have a question what does active customer mean in your report does that mean a customer who have bought the product more than one time in his first transaction month. Like suppose if i am buying a product in 2009 and then i buy in 2011 will i will be counted as an active customer, Like what are the parameters in your report whom do you consider as an active customer.
Thanks, Love from India to NIgeria

[clifordakoyo]

can you use quickmeasures to solve this

[sakshiarora]

Hi
Thank you for making these videos. They are very helpful.
Dont know why for me the measure of
Cohort Performance =

VAR _minDate = MIN(DimDate[Start of Month])

VAR _maxDate = MAX(DimDate[Start of Month])

RETURN
CALCULATE(
[Active Customers],
REMOVEFILTERS(DimDate[Start of Month]),
RELATEDTABLE(DimCustomer),
DimCustomer[First Transaction Month]<=_maxDate
&&DimCustomer[First Transaction Month]>=_minDate
)

is not working
It is giving me different results than the one you have.

[JosephBirno]

How can i be so proficient using DAX 😢? Can I feel like knowing DAX would enable gain analyse data like a pro