# How To Calculate Customer Cohort analysis in BQE CORE Suite | Arithmix

Learn how to perform customer cohort analysis in BQE CORE Suite with our step-by-step guide. Discover the benefits of this powerful tool for tracking customer behavior and making data-driven decisions. Start optimizing your business strategy today.

Customer Cohort analysis is a powerful tool that can help businesses understand their customers better. By analyzing customer behavior and trends over time, businesses can identify patterns and make data-driven decisions to improve customer retention and increase revenue. In this article, we will discuss what customer cohort analysis is, when it is valuable to calculate, and how to do it effectively.

## What Is Customer Cohort analysis?

Customer Cohort analysis is a method of grouping customers based on shared characteristics or behaviors. These groups, or cohorts, are then analyzed over time to identify trends and patterns. For example, a business might group customers based on the month they first made a purchase and then track their behavior over the next few months or years. This can help the business understand how customer behavior changes over time and what factors might influence it.

Customer Cohort analysis can be used to answer a wide range of questions, such as:

• How long do customers typically remain active?
• What is the average lifetime value of a customer?
• What factors influence customer retention?
• How do different customer segments behave over time?

## When Is It Valuable To Calculate Customer Cohort analysis?

Customer Cohort analysis can be valuable for any business that wants to improve customer retention and increase revenue. It is particularly useful for businesses with recurring revenue models, such as subscription-based services or SaaS companies. By understanding how customer behavior changes over time, these businesses can identify opportunities to improve retention and increase customer lifetime value.

Customer Cohort analysis can also be useful for businesses that want to understand how different customer segments behave over time. For example, a business might want to compare the behavior of customers who made their first purchase in January versus those who made their first purchase in June. This can help the business identify trends and patterns that might be missed by looking at overall customer behavior.

## How to Calculate Customer Cohort analysis

Calculating Customer Cohort analysis involves several steps:

1. Define the cohort: Decide on the criteria for grouping customers into cohorts. This could be based on the month they first made a purchase, the product or service they purchased, or any other relevant factor.
2. Collect data: Gather data on customer behavior over time. This could include metrics such as revenue, retention rate, or customer lifetime value.
3. Analyze the data: Calculate the relevant metrics for each cohort over time. This could involve creating a table or chart that shows how each cohort behaves over time.
4. Draw conclusions: Analyze the data to identify trends and patterns. This could involve comparing the behavior of different cohorts or looking for changes in behavior over time.
5. Take action: Use the insights gained from the analysis to make data-driven decisions. This could involve implementing changes to improve customer retention or targeting specific customer segments with marketing campaigns.

Overall, Customer Cohort analysis is a valuable tool for businesses that want to improve customer retention and increase revenue. By grouping customers based on shared characteristics and analyzing their behavior over time, businesses can identify trends and patterns that can inform data-driven decisions. Whether you are a small business owner or a marketing professional, Customer Cohort analysis is a powerful tool that can help you better understand your customers and grow your business.

## How Do You Calculate Customer Cohort analysis in BQE CORE Suite

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