Existing Customer Revenue Growth Rate

Company a has invested more directly into revenue growth than company b and for the sake of argument let s say both companies are getting customers at the same rate.

Existing customer revenue growth rate. If you re adding revenue growth rate to your startup ceo dashboard you might want to also consider tracking these related startup metrics for context. Segmented growth rate of revenue over time. Still when taking into account the lower costs of retaining customers compared to. When it comes to year over year revenue increase from existing customers the most common result is a 1 20 increase in fact 70 of companies saw a revenue increase of between 1 and 40.

In example b the business is losing customers fast but hiding it behind the rapid addition of new customers. Customer acquisition cost cac industry benchmarks. For example if company adg had 500 000 mrr at the beginning of the month 450 000 mrr at the end of the month and 65 000 mrr in upgrades that month from existing customers its revenue churn rate would be 3. Old customers where new customers drive most growth.

Over time a subscription company with lower revenue growth and a controlled churn rate will be more stable than one with high revenue growth and a high churn rate. Growth rate benchmarks vary by company stage but on average companies fall between 15 and 45 for year over.