Customer Traction Metrics

In raising funding, customer traction is a key focus point.

Here are the metrics for measuring your traction:

Customer acquisition – this includes all sources of leads such as website, email, social media, and referrals, as well conversion of leads to customers.

You can look at these metrics for each marketing action and also as an overall measure of the company’s sales and marketing efforts.

User activation – this measures how many users are using your product and how often: daily or monthly.

The more often customers use the product, the more likely they will continue with the product. 

Customer retention – this includes churn rate, renewal rate, and net promoter score.  This will determine how long customers stay with the product and delivers a lifetime value for the customer.

Customer revenue – this measures how profitable each customer is, stated either on a monthly (MRR) or annual (ARR) basis. Other factors include cost per lead and average revenue per customer.

Referrals – this measures how often users refer your solution to others and can be measured by average referral per customer and viral coefficient metrics.

A stronger virality factor generates more leads and sales. 

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