PLEASE NOTE: the following is an excerpt from "20 Competitive Metrics Every Business Needs to Know," which is now available as a free download here.
Performance Metric: GROWTH
Definition: A RELATIVE MEASUREMENT OF THE YEAR-OVER-YEAR CHANGE IN TOTAL COMPANY REVENUE
Importance: Growth is a strong indicator of product/market fit, but because it can vary significantly by industry, by year or by company life stage, it should always be benchmarked competitively.
Underlying causes/influencing factors:
- price
- product
- promotion (marketing)
- place
- process
- partners (vendors, distributors, suppliers, etc.)
- people (personnel)
Insight: What makes a “growth problem” so hard to fix is the range of possible causes. That's why the first step is to put the problem in perspective — Is weak/stagnating/negative growth unique to the company or part of a larger, industry-wide trend? Based on that answer, the company can then use other comparative performance metrics like employee productivity, marketing efficiency, customer concentration, etc. to isolate and identify the root causes or causes, ruling out areas where company performance is on par with competitors and focusing on strengthening weaknesses.
Goal: > COMPETITION
Links:
10 Popular Growth Hacks of All Time
Amazon's Four Keys to Spectacular Revenue Growth
Four Key Factors of Top Growth Companies
Seven Steps to a Growth Strategy That Works Immediately
Top 12 Ideas for Driving Consistent Growth
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