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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
Market Expansion Indicator
Shows how quickly the company is gaining new customers.
Success Gauge
Indicates effectiveness of marketing and sales efforts.
Growth Trajectory
Helps predict future business growth.
Drawbacks of
Customer Growth Rate
Can Be Volatile
Sensitive to short-term fluctuations.
Not Profit-Focused
Doesn’t indicate profitability.
Ignores Customer Value
Focuses on numbers, not customer spending or quality.
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