Startup metrics and key performance indicators (KPIs) help your startup evaluate, analyse, and grow rather than expanding blindly.
Key performance metrics vary. Not all KPIs apply to startups. Thus, performance must be measured properly.
It discusses:
1) KPI definition
Start-up KPIs
3) 34+ startup metrics, defined.
KPI goals
Startup north star metrics examples
KPI goals
Startup KPI targets reverse-engineered.
Maintaining and evaluating "S.M.A.R.T. KPIs"
Analytical Paralysis Prevention
5) Final
KPI Definition
KPIs evaluate your company's outcomes, behaviours, projects, and activities.
Start-up KPIs:
- Monthly marketing programme revenues are MoMS.
- EOR and CTR of your email blasts
- Monthly spending (burn rate)
- Lead magnet email subscription rates. (Visitor-to-lead rate)
- Visitor-to-free trial and free trial-to-customer conversion rates.
- Visitor-to-free trial conversion rate & (Activity Rate) Cash flow that repeats monthly, quarterly, annually, etc.
- Average webpage session length
- Page time
- Returning app/website visitors
- Daily, weekly, and monthly app or website users (DAU, WAU, and MAU, respectively)
- Bounce rate is the percentage of website visitors who leave without clicking.
- NPS measures user satisfaction.
Startup Metrics and KPIs
Startup performance can be measured using many KPIs:
1) MRR = monthly revenue.
2) ARR = annual revenue.
3) ARPA = MRR/Total Customer Count
4) Gross profit is revenue minus product costs.
5) TCV (Total Contract Value) equals one-time and recurring expenses.
6) ACV (Annual Contract worth): Your business's contract's annual worth.
7) LTV = Customer lifetime net profit prediction.
8) Deferred Revenue: a company's pre-generated revenue.
9) Billings=current quarterly revenue + preceding quarter's deferred revenue
10) Average client acquisition cost (CAC).
11) CCR = greatest customer sales/total sales
12) DAU = your startup's daily website or app visitors.
13) MAU means Monthly Active Users.
14) Logins= The number of portal logins.
15) Activation Rate = The number of people who perform an activity to benefit from a product.
16) MoM (Month-on-Month Growth)= The rate of growth from month to month, determined by comparing the current month or 30 days to the preceding month or 31 to 60 days.
17) CMGR = (Last Month/First Month) (1 / Months) - 1.
18) MCR (Monthly Churn Rate) = current month's lost customers/previous month's total.
19) Cohort Retention = % of first-month installed base still transacting.
20) GCR (Gross Churn Rate) = monthly MRR loss/monthly MRR at start of month
21) Net Churn = (MRR lost minus MRR from upsells) this month / MRR at start of month
22) Monthly Cash Burn Rate: Gross monthly spending.
23) Net Burn Rate = Revenues – Gross Burn Rate
24) Gross Burn = Monthly + Other Cash Expenditures
25) A product's revenue opportunity is its TAM.
26) ARR (Annual Run Rate) = Future MRR projected annually.
27) Gross Margin: Revenue minus product cost.
28) Sell-Through Rate = number of units sold divided by number of products at start of period
29) Network Effects = One user's influence on others' product valuation (Metcalfe's Law).
30) Virality = average number of invitations to existing users * invitation conversion rate
31) NPS (Net Promoter Score) = User likely to refer your product to a friend.
32) Platform Risk: Reliance on one platform or channel
33) Direct traffic comes through links or URLs.
34) Organic Traffic: Unpaid search engine traffic