Customer Growth Rate

Measures the rate at which a company's customer base expands.

Customer Growth Rate

Measures the rate at which a company's customer base expands.

Customer Growth Rate

Measures the rate at which a company's customer base expands.

Formula

CGR = (Customers at End of Period - Customers at Start of Period) / Customers at Start of Period

Know your metric

Importance of

Customer Growth Rate

  1. Market Expansion Indicator

Shows how quickly the company is gaining new customers.


  1. Success Gauge

Indicates effectiveness of marketing and sales efforts.


  1. Growth Trajectory

Helps predict future business growth.

Drawbacks of

Customer Growth Rate

  1. Can Be Volatile

Sensitive to short-term fluctuations.


  1. Not Profit-Focused

Doesn’t indicate profitability.


  1. Ignores Customer Value

Focuses on numbers, not customer spending or quality.

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