# How To Calculate Annual Recurring Revenue Cohort Analysis in Freshsales | Arithmix

Learn how to effectively calculate annual recurring revenue cohort analysis in Freshsales with our step-by-step guide. Maximize your revenue potential and gain valuable insights into your customer base. Start optimizing your sales strategy today.

If you're a business owner or a marketer, you're probably always looking for ways to improve your revenue and grow your customer base. One way to do this is by analyzing your annual recurring revenue (ARR) using cohort analysis. This method allows you to track the revenue generated by a particular group of customers over a specific period of time. In this article, we'll explain what annual recurring revenue cohort analysis is, and how you can calculate it using Freshsales.

## What Is Annual Recurring Revenue Cohort Analysis?

Annual recurring revenue (ARR) is the amount of revenue a business generates from its customers on an annual basis. Cohort analysis is a method of tracking the behavior of a particular group of customers over a specific period of time. By combining these two methods, you can track the revenue generated by a particular group of customers over a specific period of time.

Annual recurring revenue cohort analysis is useful for businesses that have a subscription-based model or recurring revenue streams. By analyzing the revenue generated by a particular group of customers over time, you can identify trends and patterns that can help you optimize your marketing and sales strategies.

## When Is It Valuable To Calculate Annual Recurring Revenue Cohort Analysis?

Annual recurring revenue cohort analysis is valuable for businesses that want to improve their revenue and customer retention. By analyzing the revenue generated by a particular group of customers over time, you can identify trends and patterns that can help you optimize your marketing and sales strategies.

For example, if you notice that a particular cohort of customers is generating a higher revenue than others, you can focus your marketing efforts on that group to increase their retention and revenue. Alternatively, if you notice that a particular cohort of customers is generating a lower revenue than others, you can identify the reasons why and take steps to improve their experience and increase their revenue.

Overall, annual recurring revenue cohort analysis is a valuable tool for businesses that want to improve their revenue and customer retention. By analyzing the revenue generated by a particular group of customers over time, you can identify trends and patterns that can help you optimize your marketing and sales strategies.

## How Do You Calculate Annual Recurring Revenue Cohort Analysis in Freshsales

Freshsales itself isn’t naturally geared towards letting you calculate complex metrics like Annual Recurring Revenue Cohort Analysis. As an alternative, teams typically use products like Arithmix to import data from Freshsales and build out dashboards.

## What is Arithmix?

Arithmix is the next generation spreadsheet - a collaborative, web-based platform for working with numbers that’s powerful yet easy to use. With Arithmix you can import data from systems like Freshsales, combine it with data from other systems, and create calculations like Annual Recurring Revenue Cohort Analysis.

In Arithmix, data is organized into Tables and referenced by name, not by cell location like a spreadsheet, simplifying calculation creation. Data and calculations can be shared with others and re-used like building blocks, vastly streamlining analysis, model building, and reporting in a highly scalable and easy to maintain platform. Data can be edited, categorized (by dimensions) and freely pivoted. Calculations are automatically copied across a dimension - eliminating copy and paste of formulas.

## Calculating Annual Recurring Revenue Cohort Analysis in Arithmix

Calculating metrics like Annual Recurring Revenue Cohort Analysis is simple in Arithmix. Once you've created your free account, you’ll be able to import your Freshsales data, and use it to create natural language formulas for metrics like Annual Recurring Revenue Cohort Analysis.

Arithmix is designed to give you the power to build any calculations you want on top of your Freshsales data, while also being easy to use and collaborate on. You can share your dashboards with users inside and outside of your organisation, making it easy to empower your whole team.