Startup Metrics
Startup Metrics

To put it in simple terms startup metrics are to measure the state of the product. It answers the following questions
  • Do users like the product?
  • What are the users clicking on?
  • Which gender, age or regions like the product more?
  • If the product is not doing well, why is it happening?
  • Which step of the campaign or the ad or new strategy increased the reach of the product?

Concepts of startup metrics

Realizing your main concern is basic, but what drives those monetary outcomes? Investigating what you can measure will enable you to keep a heartbeat on the practicality of your startup. So what are these measurements and what key metrics in business do you have to utilize first? Focus on these key beginning time startup metrics.

Data Points

  • Data points are individually collected data of a particular item
  • It also includes the date and time the measurement was made
  • This helps to track the trends and separately measure 2 or more different products


It is grouping people together under a common characteristic. It can be age, gender, or even people working in the same field as doctors, lawyers, etc
The main characteristics are
  • Technical – browser, OS, etc
  • Behavioural – new or old
  • Demographics – the type of people, language and culture
Segmentation is best suited if the product is for a particular target audience


  • A funnel is the measurement of a key event.
  • It helps to identify the mistakes made in case of a product failure
  • When the measurements of funnel metric are put together they help to find the leakage in the event – it can be a campaign or promotion.


  • It is similar to segmentation
  • However here the grouping is done based on time and characteristic of the user alone.
  • This helps to find the changes in users’ likes and dislikes about a product over a time period.
  • All the startup metrics, work on any one of the above concepts. The following are the startup metrics

A. Customer Acquisition Cost

  • Cost of obtaining a new customer.
  • It is calculated by dividing the cost of marketing by the number of customers gained in a specific time period.
  • If the CAC is increasing it means the product is failing.
  • It is always better to calculate CAC along with other metrics for a startup. This is because a new product always has higher margins

B. Retention Scale

  • It is the portion of clients that stay with the company.
  • It is calculated by subtracting the number of new customers from old customers by setting a time period. The result is then divided by the number of customers the company started with or the product had during its launch.
  • Retention scale must be as high as possible. Churn rate is the opposite of retention rate. Therefore the churn rate should be as low as possible

C. Customer Lifetime Revenue

  • It is the revenue received from the repeat customer.
  • If a customer has enrolled in a scheme for 14 months or has been buying the product for 14 months, then 14 months revenue is the CLR
  • It helps to evaluate the quality of the customer service.

D. Return on Advertising Spending –

  • It is the sales generated through advertising.

These fundamental key execution markers examples are "must-have", however, in the end, you will decide the best measurements for your business as you proceed to learn and build up your business. To learn more, visit Regardless of what others measure ("likes" in social media or just site traffic) - only you recognize what numbers will genuinely affect and illuminate your startup achievement.