Analytics
Earned Growth Rate
Earned growth rate measures the revenue growth generated from existing customers and their referrals, excluding growth from paid acquisition. It indicates how much of a company's growth comes from delivering great customer experiences rather than buying growth.
Examples
A SaaS company calculates its earned growth rate at 25%, meaning a quarter of its annual growth comes from expansion revenue and customer referrals alone.
Best Practices
Track earned growth alongside total growth to understand growth quality, invest in customer experience as a growth driver, and set earned growth targets alongside acquisition goals.