Month Over Month Growth

Measures the percentage increase or decrease in a metric from one month to the next.

Month Over Month Growth

Measures the percentage increase or decrease in a metric from one month to the next.

Month Over Month Growth

Measures the percentage increase or decrease in a metric from one month to the next.

Formula

MoM Growth = ((Current Month Value - Previous Month Value) / Previous Month Value) * 100

Know your metric

Importance of

MoM Growth

  1. Immediate Performance Insight

Month-over-month growth provides a quick snapshot of recent performance, allowing businesses to see if new strategies or market conditions are positively impacting their results.


  1. Short-Term Trends Identification

This metric helps identify short-term trends or seasonality in sales or revenue, enabling more responsive decision-making.


  1. Motivational Tool

Seeing consistent month-over-month growth can motivate a team, reinforcing the effectiveness of their efforts and strategies.

Drawbacks of

MoM Growth

  1. Volatility

Month-over-month growth can be highly volatile, especially in businesses with fluctuating sales cycles, leading to potentially misleading conclusions.


  1. Short-Term Focus

Focusing heavily on month-over-month growth can lead businesses to prioritize short-term gains over long-term stability and growth.


  1. Context Limitations

This metric alone doesn't provide context for why changes occurred, requiring further analysis to understand the underlying causes.

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