How can I measure success when scaling my startup?

How can I measure success when scaling my startup?

Measuring success while scaling a startup can involve various metrics. Key performance indicators (KPIs) like revenue growth, customer acquisition cost, and customer lifetime value are essential. What specific areas are you interested in?

I'm particularly interested in customer acquisition cost. How should I track that?

To track customer acquisition cost (CAC), divide your total marketing and sales expenses by the number of new customers acquired in a specific period. This will give you a clear picture of how much you're spending to gain each customer.

What about customer lifetime value? How does that relate to CAC?

Customer lifetime value (CLV) estimates the total revenue you can expect from a customer over their entire relationship with your business. Comparing CLV to CAC helps you understand the profitability of your customer acquisition efforts. Ideally, CLV should be significantly higher than CAC.

Are there any other metrics I should consider?

Yes, other important metrics include churn rate, monthly recurring revenue (MRR), and net promoter score (NPS). Each provides insights into different aspects of your business's health and growth.