How To Calculate ARR Cohort Analysis in Nextiva | Arithmix

ARR cohort analysis is a powerful tool that can help businesses understand how their revenue is changing over time. By tracking the revenue generated by different groups of customers, businesses can identify trends and patterns that can inform their marketing and sales strategies. In this article, we'll explain what ARR cohort analysis is, when it's valuable to calculate it, and how to do it using Nextiva.

What Is ARR Cohort Analysis?

ARR cohort analysis is a method of tracking the revenue generated by different groups of customers over time. A cohort is a group of customers who share a common characteristic, such as the month they signed up for a service or the product they purchased. By tracking the revenue generated by each cohort over time, businesses can identify trends and patterns that can help them optimize their marketing and sales strategies.

For example, suppose a business offers a subscription service that costs $10 per month. In January, the business signs up 100 customers. In February, it signs up another 100 customers. By tracking the revenue generated by each cohort over time, the business can see how much revenue is generated by customers who signed up in January versus customers who signed up in February. This can help the business identify trends and patterns that can inform its marketing and sales strategies.

When Is It Valuable To Calculate ARR Cohort Analysis?

ARR cohort analysis is valuable for any business that wants to understand how its revenue is changing over time. It's particularly useful for businesses that offer subscription services or products with recurring revenue. By tracking the revenue generated by different cohorts of customers, businesses can identify trends and patterns that can help them optimize their marketing and sales strategies.

For example, suppose a business notices that the revenue generated by customers who signed up in January is decreasing over time. By analyzing the behavior of these customers, the business may discover that they are less engaged with the service than customers who signed up in February. This may prompt the business to adjust its marketing and sales strategies to better engage customers who signed up in January.

How to Calculate ARR Cohort Analysis in Nextiva

Nextiva is a cloud-based communication platform that offers a variety of tools for businesses, including a customer relationship management (CRM) system. To calculate ARR cohort analysis in Nextiva, follow these steps:

1. Log in to your Nextiva account and navigate to the CRM dashboard.
2. Select the "Reports" tab from the top menu.
3. Click on "Revenue" in the left-hand menu.
4. Select "Cohort Analysis" from the drop-down menu.
5. Select the date range and cohort type you want to analyze.
6. Click "Generate Report" to view the results.

The report will show you the revenue generated by each cohort over time, as well as the percentage change in revenue from one period to the next. You can use this information to identify trends and patterns that can inform your marketing and sales strategies.

Overall, ARR cohort analysis is a valuable tool for businesses that want to understand how their revenue is changing over time. By tracking the revenue generated by different cohorts of customers, businesses can identify trends and patterns that can help them optimize their marketing and sales strategies. With Nextiva, calculating ARR cohort analysis is easy and straightforward, allowing businesses to make data-driven decisions that can drive growth and success.

How Do You Calculate ARR Cohort Analysis in Nextiva

Nextiva 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 Nextiva 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 Nextiva, 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.

Arithmix is fully collaborative, giving your entire team access to your numbers and the ability to work together seamlessly.

Calculating ARR Cohort Analysis in Arithmix

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

Arithmix is designed to give you the power to build any calculations you want on top of your Nextiva 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.