What are the most effective revenue growth metrics to attract and retain investors?

1 Revenue Growth Rate

Revenue growth rate is the percentage change in your revenue over a specific period, usually a month, quarter, or year. It shows how fast your business is increasing its sales and expanding its market share. Investors use this metric to assess your growth potential, scalability, and competitive advantage. To calculate your revenue growth rate, you need to subtract your previous period revenue from your current period revenue, and then divide the result by your previous period revenue. For example, if your revenue was $100,000 in Q1 and $120,000 in Q2, your revenue growth rate for Q2 would be ($120, potential, scalability, and competitive advantage. To calculate your revenue growth rate, you need to subtract your previous period revenue from your current period revenue, and then divide the result by your previous period revenue. For example, if your revenue was $100,000 in Q1 and $120,000 in Q2, your revenue growth rate for Q2 would be ($120,000 - $100,000) / $100,000 x 100% = 20%.

2 Revenue Per Customer

Revenue per customer is the average amount of revenue that you generate from each customer over a specific period. It shows how well you are monetizing your customer base and maximizing your customer lifetime value. Investors use this metric to evaluate your pricing strategy, customer retention, and cross-selling and upselling opportunities. To calculate your revenue per customer, you need to divide your total revenue by your total number of customers for the same period. For example, if your revenue was $120,000 and your number of customers was 1,000 in Q2, your revenue per customer for Q2 would be $120,000 / 1,000 = $120.

4 Revenue Growth Benchmark

Revenue growth benchmark is the comparison of your revenue growth rate with the industry average or the best performers in your sector. It shows how you are performing relative to your peers and competitors. Investors use this metric to gauge your market position, differentiation, and attractiveness. To find your revenue growth benchmark, you need to research the revenue growth rates of other businesses in your industry or segment, and then compare them with your own. For example, if your revenue growth rate was 20% in Q2, and the industry average was 15%, your revenue growth benchmark for Q2 would be 20% / 15% = 1.33, which means you are growing 33% faster than the average.

5 Revenue Growth Drivers

Revenue growth drivers are the factors that influence your revenue growth rate, such as customer acquisition, customer retention, pricing, product development, marketing, and sales. They show how you are generating and increasing your revenue and what areas you need to improve or optimize. Investors use this metric to understand your business model, strategy, and execution. To identify your revenue growth drivers, you need to analyze your revenue sources, segments, and channels, and then measure their contribution, performance, and efficiency. For example, if your revenue growth rate was 20% in Q2, and you found that 10% came from acquiring new customers, 5% came from retaining existing customers, and 5% came from raising your prices, your revenue growth drivers for Q2 would be customer acquisition, customer retention, and pricing.