What are the key performance indicators for scaling a business?

What are the key performance indicators for scaling a business?

Key performance indicators (KPIs) for scaling a business typically include revenue growth, customer acquisition cost, customer lifetime value, and churn rate.

How do I measure customer acquisition cost effectively?

To measure customer acquisition cost (CAC), divide your total marketing and sales expenses by the number of new customers acquired in a specific period.

What is a good customer lifetime value?

A good customer lifetime value (CLV) varies by industry, but generally, a CLV that is at least three times your CAC is considered healthy.

Can you explain churn rate and why it matters?

Churn rate measures the percentage of customers who stop using your service over a given period. It matters because high churn can indicate dissatisfaction and impact growth.

What other KPIs should I consider for scaling?

Other important KPIs include net promoter score (NPS), average revenue per user (ARPU), and operational efficiency metrics.