How To Calculate ARR Cohort Analysis in HubSpot Sales Hub | Arithmix

If you're looking to gain a deeper understanding of your business's revenue trends, then calculating ARR cohort analysis is a great place to start. ARR cohort analysis is a method of tracking revenue trends over time by grouping customers based on the date they first became a customer. By doing so, you can identify patterns in customer behavior and revenue trends that can help you make more informed business decisions.

What Is ARR Cohort Analysis?

ARR cohort analysis is a way of tracking revenue trends over time by grouping customers based on the date they first became a customer. This allows you to see how revenue trends change over time for different groups of customers. For example, you might group customers who signed up in January 2020 and compare their revenue trends to customers who signed up in February 2020. By doing so, you can identify patterns in customer behavior and revenue trends that can help you make more informed business decisions.

ARR stands for Annual Recurring Revenue, which is a metric used to measure the amount of revenue a business can expect to receive from its customers on an annual basis. ARR is calculated by multiplying the average monthly revenue per customer by 12. By tracking ARR cohort analysis, you can see how revenue trends change over time for different groups of customers.

When Is It Valuable To Calculate ARR Cohort Analysis?

ARR cohort analysis is valuable for businesses of all sizes and industries. It can help you identify patterns in customer behavior and revenue trends that can inform your business decisions. For example, if you notice that customers who signed up in January 2020 have a higher lifetime value than customers who signed up in February 2020, you might want to focus your marketing efforts on acquiring more customers like those who signed up in January.

ARR cohort analysis is also valuable for businesses that offer subscription-based services. By tracking revenue trends over time for different groups of customers, you can identify which customer segments are most valuable to your business and focus your retention efforts on those segments.

In conclusion, calculating ARR cohort analysis is a valuable tool for any business looking to gain a deeper understanding of their revenue trends. By grouping customers based on the date they first became a customer, you can identify patterns in customer behavior and revenue trends that can inform your business decisions. So, start tracking your ARR cohort analysis today and gain valuable insights into your business's revenue trends!

How Do You Calculate ARR Cohort Analysis in HubSpot Sales Hub

HubSpot Sales Hub 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 HubSpot Sales Hub 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 HubSpot Sales Hub, 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 HubSpot Sales Hub 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 HubSpot Sales Hub 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.