> ## Documentation Index
> Fetch the complete documentation index at: https://docs.upstackdata.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Cohort Retention %: Customer Retention Rate by Cohort

> Track what percentage of customers in each cohort make repeat purchases over time. Measure Shopify store retention to optimize LTV.

<Tip>
  The percentage of customers in a cohort who made an additional purchase in a subsequent period.
</Tip>

## Formula

<Info>
  **Cohort Retention %** = ( [**Returning Cohort Customers**](/reference/metrics/orders/customers/returning-customers) ÷ [**Initial Cohort Customers**](/reference/metrics/orders/ltv/cohort-customers) ) × 100
</Info>

### Formula Components

| Metric                                                                         | Definition                                                         |
| ------------------------------------------------------------------------------ | ------------------------------------------------------------------ |
| **Returning Cohort Customers**                                                 | Customers who made another purchase after their initial order      |
| [**Initial Cohort Customers**](/reference/metrics/orders/ltv/cohort-customers) | Total customers who made their first purchase in the cohort period |

| Metadata        |                                     |
| --------------- | ----------------------------------- |
| **Type**        | Percentage                          |
| **Data Source** | [Shopify](/sources/catalog/shopify) |
| **Aggregation** | Ratio                               |

***

## Example

Retention rates for a January 2024 cohort of 1,000 customers:

| Period After First Purchase | Returning Customers | Retention % |
| --------------------------- | ------------------- | ----------- |
| Month 2                     | 180                 | 18.0%       |
| Month 3                     | 245                 | 24.5%       |
| Month 6                     | 320                 | 32.0%       |
| Month 12                    | 385                 | 38.5%       |

***

## How It Works

Cohort Retention % measures what fraction of customers acquired in a given period come back to make additional purchases. Higher retention directly drives LTV since returning customers generate incremental revenue without additional acquisition cost. This is calculated from your Shopify transactions.

***

## When to Use

| Scenario                       | Action                                                 |
| ------------------------------ | ------------------------------------------------------ |
| Evaluating product-market fit  | Strong retention signals customer satisfaction         |
| Comparing acquisition channels | Some sources attract more loyal customers              |
| Measuring retention programs   | Track impact of loyalty or email campaigns             |
| Forecasting LTV                | Higher retention correlates with higher lifetime value |

***

## Related Metrics

| Metric                                                                         | Relationship                              |
| ------------------------------------------------------------------------------ | ----------------------------------------- |
| [Cohort Customers](/reference/metrics/orders/ltv/cohort-customers)             | The denominator (initial cohort size)     |
| [Repeat Rate](/reference/metrics/orders/performance/repeat-rate)               | Overall (non-cohort) repeat purchase rate |
| [Purchase Frequency](/reference/metrics/orders/performance/purchase-frequency) | How often retained customers buy          |
| [LTV](/reference/metrics/orders/ltv/ltv)                                       | Retention is the primary driver of LTV    |

[See all LTV metrics →](/reference/metrics/orders/ltv)