Data Analytics

What Is Revenue Growth Rate and Why Is It Valuable?

Revenue Growth Rate measures the percentage increase in revenue over time. It’s a leading indicator in showing how your company is growing.

You must calculate the revenue growth to know if you are growing or now. It can be done on your overall revenue, or the revenue created by the properties in your database (by market, by customer type, by product type, etc.)

How to Calculate


Manually:

[ (%) Revenue Growth TimePeriod B — (%) Revenue Growth TimePeriod A ] / (%) Revenue Growth TimePeriod A = (%) Revenue Growth Rate Change

  1. Create a top line calculation for total revenue during the time periods
  2. Create a calculation for each segment in your data so you can have a more detailed understanding of how your segments operate.
  3. Repeat every month or your desired timeframe

Automate:

Connect to Peel which will automate the calculation of your Revenue Growth Rate for the past 30 days.

Every Friday morning via Slack, Peel will send you a report of:

  1. Top line Revenue Growth Rate
  2. Top line your Revenue Growth Rate change from the previous 30 day period
  3. Revenue Growth Rate per segment
  4. Revenue Growth Rate change per segment
Peel Insights: Revenue Growth Rate example.
Peel Insights: Revenue Growth Rate example.
At Willy Wonka’s Chocolate Factory, the revenue growth is slowing down 165% compared to the previous 30 day period. I imagine that their golden ticket contest ended for the year and customers were a bit tired of buying their candy products, since all their products revenue growth slowed down, not just the infamous Wonka Bar.

➕ Plus analysis of your revenue, average revenue per customer, and customer retention.

Peel Insights: Revenue Report example

All you have to do is connect your database to Peel and then answer a survey telling Peel what is important to look at to find the above information. You don’t need to be an analyst or engineer to use Peel — it is truly meant for anyone who can read, but we’re always here to help.

⚡️Give us a try, we can’t wait to optimize your time and revenue literacy by automating your analysis.

👉🏼 Find us in the Slack App Directory or www.peelinsights.com


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