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Why can revenue growth hide deteriorating performance?

Because the business may be buying that growth through heavier discounts, higher acquisition costs or lower-margin products. Existing customers may also be masking weakness in new-customer acquisition. When revenue grows, ask what happened to contribution, customer mix, repeat rate, discounting and marketing cost. Growth is good; understanding its quality is better.

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Ecommerce & Trading Strategy

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Alan Eves
Independent Ecommerce & Digital Growth Consultant