# How To Calculate ARR Cohort Analysis in BQE CORE | Arithmix

Learn how to effectively calculate ARR Cohort Analysis in BQE CORE with our comprehensive guide. Discover the benefits of this powerful tool and improve your financial analysis skills today.

ARR cohort analysis is a valuable tool for businesses that want to track the performance of their customer base over time. By analyzing the average revenue per customer (ARR) for each cohort, businesses can identify trends and patterns that can help them optimize their marketing and sales strategies. If you're using BQE CORE, here's how you can calculate ARR cohort analysis:

1. First, you need to define your cohorts. A cohort is a group of customers who share a common characteristic, such as the month they signed up for your service or the region they're located in. In BQE CORE, you can create cohorts based on any attribute that you've collected about your customers.
2. Next, you need to calculate the ARR for each cohort. To do this, you'll need to add up the total revenue generated by each cohort over a specific period of time (such as a month or a quarter) and divide it by the number of customers in that cohort.
3. Once you have the ARR for each cohort, you can plot it on a graph to visualize the trends over time. This will help you identify which cohorts are growing or shrinking, and which ones are generating the most revenue.
4. Finally, you can use the insights from your ARR cohort analysis to make data-driven decisions about your marketing and sales strategies. For example, if you notice that a particular cohort is generating a lot of revenue, you might want to invest more resources in targeting similar customers.

## What Is ARR Cohort Analysis?

ARR cohort analysis is a method of tracking the performance of a customer base over time by analyzing the average revenue per customer (ARR) for each cohort. A cohort is a group of customers who share a common characteristic, such as the month they signed up for your service or the region they're located in. By analyzing the ARR for each cohort, businesses can identify trends and patterns that can help them optimize their marketing and sales strategies.

ARR cohort analysis is particularly useful for businesses that have a subscription-based model, as it allows them to track the revenue generated by each cohort over time. This can help businesses identify which cohorts are the most valuable, and which ones are in need of additional attention.

## When Is It Valuable To Calculate ARR Cohort Analysis?

ARR cohort analysis is valuable for any business that wants to track the performance of their customer base over time. However, it is particularly useful for businesses that have a subscription-based model, as it allows them to track the revenue generated by each cohort over time.

By analyzing the ARR for each cohort, businesses can identify trends and patterns that can help them optimize their marketing and sales strategies. For example, if a particular cohort is generating a lot of revenue, a business might want to invest more resources in targeting similar customers. Conversely, if a cohort is underperforming, a business might want to adjust their marketing or sales strategy to better appeal to that group of customers.

Overall, ARR cohort analysis is a valuable tool for any business that wants to make data-driven decisions about their marketing and sales strategies. By analyzing the performance of their customer base over time, businesses can identify opportunities for growth and optimize their operations for long-term success.

## How Do You Calculate ARR Cohort Analysis in BQE CORE

BQE CORE itself isn’t naturally geared towards letting you calculate complex metrics like ARR Cohort Analysis. As an alternative, teams typically use products like Arithmix to import data from BQE CORE 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 BQE CORE, combine it with data from other systems, and create calculations like ARR 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.