Key Performance Indicators Examples
New Customer Growth Rate
New Customer Growth Rate is a metric that measures the rate at which a company is acquiring new customers over a specific period of time. It is used to measure the effectiveness of a company’s customer acquisition efforts and to identify areas where the company could improve its customer acquisition strategies.
The formula for New Customer Growth Rate is:
New Customer Growth Rate = (New Customers Acquired / Total Number of Customers at the Beginning of the Period) * 100%
It is calculated by dividing the number of new customers acquired over a specific period of time by the total number of customers at the beginning of that period, and then multiplying by 100% to express the result as a percentage.
For example, if a company had 100 customers at the beginning of the month and acquired 20 new customers during that month, the New Customer Growth Rate would be 20%.
It’s important to track New Customer Growth Rate over time and compare it against industry benchmarks and historical data, to identify areas where the company could improve its customer acquisition strategies. It’s also important to track New Customer Growth Rate by different segments, such as demographic, geographic, or behavior groups, in order to identify where the problem is and take action to increase the New Customer Growth Rate.
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