Compound growth rate

Calculate your true growth trajectory by measuring the rate at which your business grows when gains build on previous gains over multiple periods.

Compound growth rate

Compound growth rate

definition

Introduction

Why it matters

How to apply it

Keep learning

Growth orchestration

Get a grip on what's actually working and what needs course correction. Use data and experiments to make decisions instead of opinions. See how changes in one part of the system affect everything else. Random tactics don't compound, coordinated ones do.

Explore playbooks

Tool selection

Tool selection

Select tools across your growth stack using clear evaluation criteria. Avoid common pitfalls, ensure integrations work, and build a system that scales with your business.

Customer research

Customer research

Uncover specific pain points, validate assumptions, and reveal what actually drives buying decisions. Run research that produces actionable insights, not just interesting quotes.

Quarterly strategy

Quarterly strategy

Run quarterly business reviews that assess current state, set ambitious but realistic goals, build actionable roadmaps, and define key results that keep everyone aligned.

Monthly review

Monthly review

Analyse monthly performance data across all four growth engines. Identify what is working, what is not, and make tactical adjustments using a structured decision framework.

Related books

Atomic Habits

James Clear

Rating

Rating

Rating

Rating

Rating

Atomic Habits

Turn habit theory into daily practice for marketers. Simple cues, tiny wins and scorecards that help teams deliver consistently under pressure.

Related chapters

3

How compound growth beats hard work

Sarah runs fewer experiments but wins anyway. She aligns 12 metrics across 4 engines. See how systematic leverage creates exponential results.

4

How to double revenue without doubling the work

Small improvements across 12 metrics multiply into exponential growth. Learn how engines connect, why improvements compound, and where leverage lives.

Wiki

Attribution model

Assign credit to marketing touchpoints that influence conversions to understand which channels work together and deserve budget in multi-touch journeys.

First-touch attribution

Credit the channel that introduced prospects to your brand to measure awareness efforts and understand which top-of-funnel activities start customer journeys.

Data warehouse

Store raw data from all business systems in one place to run analyses and build reports that combine information across marketing, sales, and product.

Deal stage

Define pipeline progression steps to standardise how reps advance opportunities and give managers visibility into where deals stall or convert unexpectedly.

Lead velocity rate

Measure the month-over-month growth in qualified leads to predict future revenue and catch pipeline problems before they impact revenue three months later.

Buyer persona

Document your ideal customer's role, goals, and challenges to tailor messaging and prioritise features that solve real problems they actually pay for.

Objectives and Key Results (OKRs)

Set ambitious goals and measurable outcomes that cascade through your organisation, creating alignment and accountability for strategic priorities.

Key Performance Indicator (KPI)

Select metrics that reveal whether you're achieving strategic goals to track progress and identify problems before they become expensive to fix.

Growth marketing

Apply disciplined experimentation across the entire customer lifecycle, optimising every stage through rapid testing and data-driven iteration.

Compound growth rate

Calculate your true growth trajectory by measuring the rate at which your business grows when gains build on previous gains over multiple periods.

Pirate metrics

Track your user journey through Acquisition, Activation, Retention, Referral, and Revenue to identify which stage constrains growth most.

Customer Acquisition Cost (CAC)

Calculate the total cost of winning a new customer to evaluate marketing efficiency and ensure sustainable unit economics across all channels.

Inbound Marketing

Attract prospects through valuable content that solves real problems, building trust and generating qualified leads who approach you.

Sample size

Calculate how many users you need in experiments to detect meaningful differences and avoid declaring winners prematurely based on insufficient data.

Multi-touch attribution

Distribute conversion credit across multiple touchpoints to recognise that customer journeys involve many interactions and channels working together.

Last-touch attribution

Assign full conversion credit to the final touchpoint before purchase to identify which channels close deals but miss earlier influences that started journeys.

Event tracking

Capture specific user actions in your product or website to understand behaviour patterns and measure whether changes improve outcomes or create friction.

North Star Metric

Choose one metric that best predicts long-term success to align your entire team on what matters and avoid conflicting priorities that dilute focus.

Total Addressable Market (TAM)

Estimate the maximum revenue opportunity if you captured 100% market share to size your opportunity and prioritise which markets to enter first.

Partner-led growth

Scale through partner relationships where other companies distribute your product to their customers in exchange for commissions or reciprocal value.