Customer Growth

Customer growth means an increase in the number of customers a company has. In simple terms, customer growth shows whether more people or businesses are buying from the company. Customer growth is important because it can support future revenue, market share, and long-term business value. Investors watch customer growth especially for subscription, platform, software, and consumer businesses. For example, if a company grows from 1 million customers to 1.2 million customers, it has 20% customer growth. Customer growth is not enough by itself. Investors also care whether those customers are profitable, loyal, and spending more over time.