The Dollar Retention table shows how revenue from new customer cohorts evolves, providing crucial insights into the long-term value of your customer base. While Customer Retention tracks how many customers return, Dollar Retention reveals how much they spend.
Key Insights
First Month Performance (Month 0)
Values over 100% indicate customers making additional purchases in their first month
Revenue Retention Patterns
Strong follow-up months (>10%) suggest successful repeat purchase behavior
Declining percentages are normal, but sharp drops may need investigation
Consistent patterns across cohorts indicate stable business performance
Action Items
Compare with Customer Retention
High Dollar/Low Customer Retention
Fewer customers are returning but those who do are spending more
Opportunity for customer win-back campaigns
Focus on high-value customer experience
Low Dollar/High Customer Retention
Many customers return but are spending less
Opportunity for basket size optimization
Consider product mix and pricing strategies
Optimization Strategies
For Early Stage Customers (0-2 Months)
Cross-sell campaigns
Product bundling
First-purchase upsell opportunities
Welcome series optimization
For Mid Stage Customers (3-4 Months)
Personalized product recommendations
Category expansion initiatives
Loyalty program benefits
VIP tier qualification pushes
For Long Term Customers (Months 5+)
High-value customer programs
Subscription offerings
Premium product launches
Exclusive collections or early access