5 Startup KPIs To Measure

Whether your venture is really working

A great business plan is only half the story. You also need to measure whether your startup is truly making a difference in the world and if it's worth pursuing. Here are five KPIs to measure the same.

Customer Acquisition Cost 

1

CAC is the amount of money your company spends acquiring new customers each month. A high CAC is bad because it indicates your model isn't scalable and/or you're spending a lot of money on customer acquisition.

Customer Lifetime Value

2

CLV is the total value of all the money your customers spends on your offering over their association with your company. A high CLV means your customers are happy with your product.

Customer Retention Rate

3

It's the percentage of customers that you keep using your product within a specific time period. A high retention rate indicates that your customers find the product useful and that they're willing to pay for it.

Average Revenue Per User

4

It's the amount of money you make per user in a given time period (usually a month). ARPU gives you a good indication whether you're making enough money from your customers.

Churn Rate

5

It's the percentage of customers that leave your company within a given time period. A high churn rate is a bad thing because it means your customers don't stick around and you're might not be profitable in the long run. 

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