Companies are generating more data than ever before, but most of it just sits there. Getting good insights from it is often too hard, too costly or just takes too much time.
We’re here to tell you that this simply isn’t true.
To help companies better understand how Peerview Data’s process of Big Data, analytics and benchmarking software process works, we're continuing a series of blog posts that examine the individual performance metrics that are at the heart of this analysis.
- KPI: Revenue Growth Rate
- DEFINITION: Revenue growth measures the percent increase or decrease in sales from one period to the next, usually years, quarters or months.
- FORMULA: (revenue for current period/revenue for previous period)-1
- BENCHMARK: Varies by industry, life cycle and company goals and priorities
- SIGNIFICANCE: As a standalone metric, revenue growth is an indicator of a company's general health. Because companies that don't grow don't last, companies that grow slower than their competitors get left behind, and companies that grow too fast to keep up can burn out, revenue growth should also be used as a comparative metric.
- RECOMMENDATION: No or low revenue growth: assess product/market fit. High revenue growth: assess sustainability by tracking productivity, profitability and operational efficiency.
- RELATED: Gross Margin, Net Income, EBITDA, Operating Expenses Growth Rate, Revenue Per Employee, Revenue Per Client