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High revenue growth is a key selling point when seeking investment or financial backing. You can also compare your performance against industry averages or competitors.

Formula:

Revenue Growth = (Current Period Revenue – Previous Period Revenue) / Previous Period Revenue

For example, to measure revenue growth over one year, Current Period Revenue is your total revenue today, while Previous Period Revenue is your total revenue on the same day in the previous year.

1.3. Client Revenue
Client revenue focuses on the revenue generated from individual clients. You can identify your most valuable clients, assess client-specific profitability, and determine the impact of these specific services on overall revenue.

Owners and executives can use this metric to determine resource allocation, inform pricing, identify opportunities for upselling additional services, and develop retention strategies for high-revenue clients.

Client revenue may not be useful for short-term operational or financial decisions, such as deciding whether to cut costs or adjust service pricing. If you have many one-time or short-term clients, metrics like project profitability may be more relevant.

Formula:

Client Revenue = Revenue from Client 1 + Revenue from Client 2 + ... + Revenue from Client n

1.4. Average Revenue per Client (ARPC)
This metric calculates the average income generated by each client, so you can understand the value of each relationship and identify opportunities to increase revenue per client. If ARPC is lower than desired, it may be time to increase rates or upsell.

Your sales team can also use ARPC to understand the type of clients you are attracting and to set revenue goals for each new one. You can tailor sales strategies toward acquiring more high-value clients.

ARPC might not provide meaningful insights if you serve clients with a wide range of revenue contributions. In this case, segment clients and calculate ARPC per category (e.g., small business clients vs. Enterprise).

Formula:

Average Revenue Per Client = Total Agency Revenue / Number of Clients

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2. Client Acquisition Metrics
Monitoring agency metrics and KPIs informs you about your agency's digital strategy performance and enables you to make data-driven decisions.

Client acquisition metrics are some of the most crucial agency KPIs that measure your effectiveness in attracting new clients. You can assess the efficiency of your acquisition strategies, evaluate marketing and sales performance, and optimize efforts to attract and convert potential clients.