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 


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


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


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


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


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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