Alright, in a rare break from how I tend to write, no narrative this time besides this which you’re reading now. A list! The KPIs (Key Performance Indicators) your startup should have.
More importantly, Startup KPIs must be:
- Well defined
- Communicated throughout your team
If they’re not, they’re not KPIs, they’re distractions or vanity metrics.
- Profit: both gross and net profit margin.
- Cost: Measure cost effectiveness and find the best ways to reduce and manage your costs.
- Revenue vs. Target: Comparison between your actual revenue and your projected revenue.
- Cost Of Goods Sold: Tallying all production costs.
- Sales By Region: Better feedback for underperforming regions.
- Expenses vs. Budget: Compare your actual overhead with your forecasted budget.
- Lifetime Value (CLV): Use this to narrow down which channel help you gain the best customers for the best price.
- Customer Acquisition Cost (CAC): Divide your total acquisition costs by the number of new customers in the time frame you’re examining.
- Customer Satisfaction & Retention: Use customer satisfaction scores and percentage of customers repeating a purchase.
- Net Promoter Score (NPS): Quarterly surveys to customers to see how likely it is that they’ll recommend your organization to someone they know.
- Number Of Customers: How many have you gained and lost? Are you meeting their needs and expectations?
- Site Value: Immediately applicable with offline businesses as well, instrument your site’s analytics to report Value and then constantly strive for a greater number.
- Conversion Rate: This is a metric that could be (should be) constantly improving; at least until you reach a point where it seemingly can not be further improved after weeks or months of trial.
- Customer Support Tickets: Analysis of the number of new tickets and the number of resolved tickets.
- Turnover Rate: Take the number of employees who have left the company and divide it by the average total.
- Employee Satisfaction: Measure employee satisfaction through anonymous surveys.