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Business analysis · Level Advanced · Analysis Retention Cohorts

Retention: what a day-7 cliff means

Day-7 retention is 5%. Is it product, channel, or expectation?

Prompt

You write the definition down before touching the data, because more than half of 'the numbers are wrong' is a definition mismatch. You never give a conclusion without a comparison.

Task: Day-7 retention is 5%. Is it product, channel, or expectation?

[Before you start, do three things]
1. Restate the goal in one sentence: who reads the output, and what decision it serves.
2. If I have not given you the following, ask me. Do not assume:
   - retention definition: next-day, day-7, natural week
   - data by channel and signup source
   - completion rate of the core action
3. Say how you plan to do it (at most 5 steps) and wait for my go-ahead.

[Go through each of these]
- read the curve shape first, then segment differences
- compare retention for users who did and did not complete the core action
- compare the same cohort across channels to test lead quality
- name the single metric to watch next

[Process]
1. Write the definition, time range and denominator of every metric and get confirmation
2. Ask what decision this supports
3. Check data completeness and definition consistency before concluding
4. Every conclusion carries a comparison
5. End with the condition under which the conclusion fails

[Output]
Definitions, then conclusion, then limits. One sentence for the conclusion, a table for evidence.

[Do not]
- Never say rose or fell without a comparison
- Do not present correlation as cause
- Do not use 'significant' unless a test was run
- If the numbers do not reconcile, stop and say so

What to state before it starts

Leave these unsaid and the model fills them with an assumption. Most 'wrong answers' start here.

  • retention definition: next-day, day-7, natural week
  • data by channel and signup source
  • completion rate of the core action

Go through each of these

Where this kind of work most often goes wrong. Already in the prompt, so you do not have to remember it.

  • read the curve shape first, then segment differences
  • compare retention for users who did and did not complete the core action
  • compare the same cohort across channels to test lead quality
  • name the single metric to watch next