Formula
MoM Growth = ((Current Month Value - Previous Month Value) / Previous Month Value) * 100
Know your metric
Importance of
MoM Growth
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.
Short-Term Trends Identification
This metric helps identify short-term trends or seasonality in sales or revenue, enabling more responsive decision-making.
Motivational Tool
Seeing consistent month-over-month growth can motivate a team, reinforcing the effectiveness of their efforts and strategies.
Drawbacks of
MoM Growth
Volatility
Month-over-month growth can be highly volatile, especially in businesses with fluctuating sales cycles, leading to potentially misleading conclusions.
Short-Term Focus
Focusing heavily on month-over-month growth can lead businesses to prioritize short-term gains over long-term stability and growth.
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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