Customer Growth Rate: What it is & Why it Matters | Jirav

What is Customer Growth %?

The Customer Growth % reflects the increase or decrease in the number of customers over a given period of time.

Why Customer Growth % Is Important

Customer Growth % is a critical metric, because it provides valuable insights into the health and growth of the company. A high Customer Growth % indicates that the company is attracting new customers and retaining existing ones, which is essential for the long-term success of the business. On the other hand, a low Customer Growth % can indicate that the company is struggling to attract new customers or retain existing ones, which can have a negative impact on the business.

How to Calculate Customer Growth %

Customer Growth % is calculated by comparing a company's current number of customers to its previous number of customers over a specific period. The formula for calculating Customer Growth % is as follows:

Customer Growth % = (Current Customers - Previous Customers) / Previous Customers x 100

For example, if a company had 100 customers the prior month and 120 customers for the current month, the Customer Growth % would be:

Customer Growth % = (120 - 100) / 100 x 100 = 20%