Seed-Stage Metrics

Seed-Stage Metrics

January 7, 2022 by investor

Seed-Stage Metrics

Seed-stage startups have a few users trying out a beta product.

The startup is working on the go-to-market strategy and focusing on customer acquisition.

Key metrics to use are monthly unique users, monthly new leads, customer acquisition rate, and churn rate.

This measures basic customer acquisition.

To measure conversion, use the visit-to-lead rate and lead-to-customer conversion.

This shows the basic conversion rate for signing up customers. 

To measure the effectiveness of marketing, use cost per lead, customer acquisition cost, and monthly recurring revenue. 

This matches the cost of signing up a customer to the recurring revenue it generates.

To measure the usage rate, use the average use per user per month.

This shows the importance of the product to the users’ work.

In the early days of the startup, focus your metrics on customer acquisition rates, effectiveness of marketing, and customer engagement with the product.

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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.

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