#GuestPost from #GrowthSchool
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| Image courtesy: ntaskmanager.com |
One of the biggest reasons why startups fail is that they don't track the right metrics from the beginning
Here are 25 metrics that a successful entrepreneur tracks on a daily/
weekly basis at Growth School
𝗢𝘃𝗲𝗿𝗮𝗹𝗹
𝗛𝗲𝗮𝗹𝘁𝗵 𝗠𝗲𝘁𝗿𝗶𝗰𝘀
:
1. CSAT : Customer Satisfaction score usually rated
from 1-5
We track different CSAT for products, content,
mentor, and programs.
2. ARR : Annualised Revenue Rate ( usually for
non-SaaS brands which are not recurring )
3. Gross Margin ( GM ): Revenue - Fixed cost for
the product
4. Contribution Margin ( CM ): Gross Margin - Cost
of marketing and sales Different brands track this differently and can split it
into CM1, CM2 , CM2 so on
5. EBIDTA : Money made after all deductions (
excluding taxes and depreciating assets )
A great metric for measuring profitability.
6. Burn Rate: Total spend per month ( can be
measured based on % of revenue vs total burn as well )
7. Runway: How long will the VC money last
considering the current burn rate
𝗨𝘀𝗲𝗿 𝗟𝗲𝘃𝗲𝗹
𝗠𝗲𝘁𝗿𝗶𝗰𝘀 :
8. LTV : Lifetime value of the customer
Total predicted spending a customer will make over
his lifetime of using the product. This is hard to measure for early-stage
startups.
9. LTV : CAC : Ratio between LTV to CAC
Probably the most important metric for investors
and the health of the business. A good ratio is 4 and above.
𝗦𝗶𝗻𝗰𝗲 𝗟𝗧𝗩
𝗶𝘀 𝗵𝗮𝗿𝗱 𝘁𝗼 𝗺𝗲𝗮𝘀𝘂𝗿𝗲
𝗳𝗼𝗿 𝘂𝘀, 𝘄𝗲 𝗺𝗲𝗮𝘀𝘂𝗿𝗲
10. AOV : Average order value ( Single purchase )
11. AOV : CAC : Ratio between AOV to CAC
A much more aggressive metric to measure vs LTV :
CAC but tells a lot about health of the business
We have also started to measure
12. ARPU : Average revenue per user ( Avg no orders
per user * Avg order value )
13. ARPU : CAC : I am sure you can guess what this
is by now.
14. AOPU : Average number of orders per user
15. ROAS : Return on ad spend - Total revenue from
ads / total ad spend.
𝗠𝗮𝗿𝗸𝗲𝘁𝗶𝗻𝗴
𝗠𝗲𝘁𝗿𝗶𝗰𝘀 :
16. CAC : Cost of Acquisition - cost to acquire one
user
17. Paid CAC : Cost of Acquisition from paid
channels eg fb ads, google ads etc
18. Blended CAC : Average Cost of Acquisition from
all channels ( Eg: Paid + Organic + Referral )
19. Click to LPV : % of users click on ads and land
on the Landing page
Yes, not everyone who clicks lands on the landing
page. We try to hit 80%
20. CPLPV : Cost per landing page view
21. Cost of ATC : Cost for adding to cart
22. LPV to ATC : % of users who click on add to
cart from people to land on the landing page
23. ATC to Purchase: % of people to eventually buy
after adding to cart
24. CPA : Cost per action
25. CVR : % Conversion Rate
While these might not be everything that we
measure, as there are many different metrics individual teams measure,
Looking at these metrics as a founder gives a good
idea of how the business is doing on a DoD, WoW and MoM basis.
What important metrics do you measure daily in your
job or running your business?
