Re:How we reduced our cancellation rate by 87.5%
by losvedir on Sunday June 17, 2012 @09:25AM
(#4122890)
I think I see what you're saying (given an average cancellation time, only half the customers will have cancelled by that time), but I think it depends on how they calculated it.
For instance, they could know the average number of cancellations in a week, and see how that number has dropped.
I think this would work out, provided it doesn't matter too much whether the two actions they've taken (the two emails) occur right when the gym signs up or later on.
You're right that an average time to cancel of 61 days implies some may cancel at, say, 80 days. But some gym signed up 20 days before this cohort analysis began, and could have been the one to cancel had it not been for these changes.
For instance, they could know the average number of cancellations in a week, and see how that number has dropped.
I think this would work out, provided it doesn't matter too much whether the two actions they've taken (the two emails) occur right when the gym signs up or later on.
You're right that an average time to cancel of 61 days implies some may cancel at, say, 80 days. But some gym signed up 20 days before this cohort analysis began, and could have been the one to cancel had it not been for these changes.