Once you have product-market fit and start seeing growth, consider these metrics for your business:
1. Activation rate – the percentage of users achieving some step in activating your product. This helps you determine where users are dropping off.
2. Active users – the total number of users who used the product either daily or monthly.
3. Average sales cycle – the average number of days to sign up a customer.
4. Burn rate – amount of cash you are spending over your cash expenses on a monthly basis.
5. Cash runway – how many months of cash you have based on your burn rate.
6. Customer acquisition cost – the total cost of sales and marketing to sign up each customer.
7. Churn rate – the percentage of users who drop out each month.
8. Customer lifetime value – the total amount of revenue for the average customer.
9. Lead velocity rate – the growth of qualified leads in the sales pipeline.
10. Signup rate – the number of new customers signing up either daily or monthly.
11. Revenue growth rate – the percentage of growth month over month.
12. User engagement – the number of daily users divided by the number of monthly users, which shows how sticky your product is.
Each metric showcases a different aspect of your growth.
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Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.