Growth Rate

This metric shows the percentage of new and restarted subscriptions in a given time period as a proportion of the active users at the beginning of the period.

Growth is expressed by the formula:

(number of new or restarted subscriptions during the period) / (number of subscriptions paid at the beginning of the period) * 100.

A growth rate higher than 0% indicates that a business is successfully attracting new customers and expanding its user base. It demonstrates the effectiveness of marketing efforts, customer retention strategies, and the overall appeal of the product or service.

However, it is important to keep in mind that a growth rate alone does not provide a complete picture. To evaluate the success of a business, it is necessary to compare the growth rate with other key metrics and benchmarks within the industry.

While growth is essential for business success, it is equally important to manage churn effectively. Churn rate refers to the percentage of customers who discontinue their subscriptions or cancel their accounts within a given period. To ensure sustainable growth, the growth rate must exceed the churn rate. This means that a business needs to acquire more new customers than it loses.