New Buyer Growth Rate

Jargon
Written By Landon Howell

New Buyer Growth Rate is a metric that measures the rate at which a startup is acquiring new customers.

It specifically measures the percentage increase in the number of new customers over a specific period of time, typically on a month-over-month or quarter-over-quarter basis.

How to calculate New Buyer Growth Rate

(#) of New Buyers This Month - (#) of New Buyers Last Month / (#) of New Buyers Last Month = (%) New Buyer Growth Rate

…or you can calculate total Buyer Growth Rate for a period of time…

(#) Of Buyers This Month - (#) of Buyers Last Month / (#) Of Buyers Last Month = (%) Buyer Growth Rate

  • A high New Buyer Growth Rate indicates that a startup is successfully acquiring new customers and has a strong business model.

  • A low or negative New Buyer Growth Rate indicates that a startup is struggling to attract and retain new customers and may need to change its marketing or sales approach.

Landon Howell
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