fundamental metrics for startups

12
Image Source Andrei Marinescu @malaparte Start-up Metrics

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Post on 08-Sep-2014

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A discussion of key startup metrics and how they're calculated.

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Page 2: Fundamental Metrics for Startups

Product & growth guy // DHIC @500SAdvisor & mentor // Former Hulu growth lead

Page 3: Fundamental Metrics for Startups

“If you can’t measure it, you can’t manage it.”

Page 6: Fundamental Metrics for Startups

Churn Rate

Page 7: Fundamental Metrics for Startups

Conversion Rate

CR = # Converted Users

# Starting Users

Page 8: Fundamental Metrics for Startups

CAC = Sales & Marketing Expenses

# Customers Acquired

Customer Acquisition Cost

Page 9: Fundamental Metrics for Startups

ARPU = Revenue in Period

# Purchasing Customers

Average Revenue Per User

Page 10: Fundamental Metrics for Startups

Lifetime Value

Page 11: Fundamental Metrics for Startups

Measure what matters

Page 12: Fundamental Metrics for Startups

User engagement cycle