Cohorted retention tracks retention over time, relative to the size of the cohort in the first month customers are active (Month 0). However, it can be helpful to do analysis on retention compared to a later period: for example, for a company with usage-based pricing, Month 0 may have low revenue due to customers only using the product for part of the month. In this case, the Cohort Retention Baseline for Dollar Retention can be shifted to Month 1. Month 1 will now be “100%”, and ARR in that month is what all future months will be compared to.
