BlueWave Capital is assessing the long$-$term value and customer retention of a software$-$as$-$a$-$service $($SaaS$)$ business. They utilize cohort analysis as a tool in their investigation. What is the fundamental application of cohort analysis in this context?

Cohort analysis assesses the variance in behavior among users who subscribed during the same time period to assist in optimizing the user experience.

Cohort analysis helps in identifying patterns in software feature usage among different customer groups to inform product development priorities.

Cohort analysis is applied to determine the influence of seasonal trends on customer acquisition and churn rates.

Cohort analysis segments customers into groups based on their subscription start date to track and compare their behavior, retention, and revenue contribution over time.