The objective of this plan is to evaluate company growth through various pivotal metrics. These metrics give insights into critical performance areas, such as Revenue Growth Rate, Market Share, Customer Acquisition Cost, Lifetime Value, and Net Promoter Score. Each metric highlights essential areas for improvement and provides benchmarks for evaluating success.
For example, the Revenue Growth Rate helps to identify how effectively the company is expanding its sales, while Market Share indicates the company's competitive standing within the industry. Both metrics, along with others, provide a comprehensive overview that can guide strategic decisions and optimizations.
Effective measurement and improvement in these areas can lead to sustained growth and profitability, ensuring that the company can maintain a competitive edge and satisfy its stakeholders.
Top 5 metrics for Measure Company Growth
1. Revenue Growth Rate
The increase in a company’s sales over a specific period, typically compared annually or quarterly
What good looks like for this metric: 10-25% annually is healthy
How to improve this metric:- Increase marketing efforts
- Expand product line
- Enhance customer retention strategies
- Optimize pricing strategy
- Target new markets
2. Market Share
The portion of a market controlled by a particular company or product
What good looks like for this metric: Varies by industry, generally 15% is strong
How to improve this metric:- Benchmark against competitors
- Enhance brand presence
- Improve customer satisfaction
- Innovate product offerings
- Invest in advertising
3. Customer Acquisition Cost (CAC)
The cost of acquiring a new customer, calculated by dividing total acquisition expenses by the number of new customers
What good looks like for this metric: Less than 1/3 of Lifetime Value (LTV)
How to improve this metric:- Refine marketing strategies
- Enhance sales team performance
- Improve conversion rates
- Utilize cost-effective channels
- Focus on content marketing
4. Lifetime Value of a Customer (LTV)
The total revenue expected from a customer account throughout its lifetime relationship with a company
What good looks like for this metric: Should be 3 times CAC
How to improve this metric:- Enhance customer support
- Offer personalised services
- Increase customer engagement
- Implement loyalty programs
- Provide value-added services
5. Net Promoter Score (NPS)
A measure of customer satisfaction and loyalty based on how likely customers are to recommend a company’s products or services to others
What good looks like for this metric: NPS of 30 or above is good
How to improve this metric:- Solicit customer feedback
- Improve product quality
- Enhance customer service
- Address customer complaints
- Engage with detractors and promoters
How to track Measure Company Growth metrics
It's one thing to have a plan, it's another to stick to it. We hope that the examples above will help you get started with your own strategy, but we also know that it's easy to get lost in the day-to-day effort.
That's why we built Tability: to help you track your progress, keep your team aligned, and make sure you're always moving in the right direction.
Give it a try and see how it can help you bring accountability to your metrics.
