Startup Metrics
Startup Metrics

To put it in simple terms, startup metrics 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 region likes the product more?
  • If the product is not doing well, why is it happening?
  • Which step of the campaign, the ad or the new strategy, increased the reach of the product?

Concepts of startup metrics

Realizing your primary concern is essential, 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 critical business metrics must you utilize first? Focus on these critical 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 critical event.
  • It helps to identify the mistakes made in case of a product failure
  • When the measurements of funnel metrics are put together, they help to find the leakage in the event, which can be a campaign or promotion.


  • It is similar to segmentation.
  • However, here, the grouping is done based on time and characteristics of the user alone.
  • This helps to find user likes and dislikes changes about a product over time.
  • 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 marketing cost by the number of customers gained in a specific period.
  • If the CAC is increasing, it means the product is failing.
  • Calculating CAC and other metrics for a startup is always better. 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 and old customers by setting a period. The result is then divided by the number of customers the company started with, or the product had during its launch.
  • The retention scale must be as high as possible. The churn rate is the opposite of the 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 of 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-haves"; 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.