What are the most important KPIs for startups?

What are the most important KPIs for startups?

The most important KPIs for startups typically include Customer Acquisition Cost (CAC), Lifetime Value (LTV), Monthly Recurring Revenue (MRR), and Churn Rate. These metrics help you understand your business's financial health and growth potential.

How do I calculate Customer Acquisition Cost?

To calculate Customer Acquisition Cost (CAC), divide the total costs associated with acquiring new customers (like marketing expenses) by the number of new customers acquired in a specific period. For example, if you spent $1,000 on marketing and acquired 100 customers, your CAC would be $10.

What is a good LTV to CAC ratio?

A good LTV to CAC ratio is typically 3:1. This means that for every dollar spent on acquiring a customer, you should aim to earn three dollars in return over the customer's lifetime.

Can you explain Churn Rate?

Churn Rate is the percentage of customers who stop using your product or service during a specific time period. It's calculated by dividing the number of customers lost by the total number of customers at the start of the period.