Cohort isn’t a metric per se, but is just as important. By definition, a cohort is a group with a common statistical characteristic such as a common price band or geography. It is a style of report that not only is useful in indicating churn, but also can be used to test marketing campaigns and resource allocation.
Read MoreCustomer acquisition cost (CAC) is another critical metric because it allows you to determine the customer lifetime value versus customer acquisition cost (CLV/CAC) ratio. In other words, what you can expect to get in customer lifetime value for every dollar you spend to acquire that customer. You’ll need to calculate CLV and CAC separately to get this ratio.
Read MoreMonthly Recurring Revenue is referred to as MRR. It is arguably the most important metric of any SaaS business. It’s important because it gives you the operational insight to accurately plan, forecast and measure growth.
Read MoreDead Man Walking… Yes, the term has been used a million times to describe an individual who is “on the way out”.
Read MoreBuilding a business is tough. Without specific goals and direction, keeping teams focused is almost impossible.
Read MoreYou’ve probably heard the phrase, “You don’t know what you don’t know”. As entrepreneurs, we face new challenges every day on the road to starting and building a business. It’s hard to know which processes and metrics are important as you manage a team, finances and overall operations. I’ve worked with well over 100 startups who all worked very hard to achieve their goals. Unfortunately tracking sales and marketing metrics often falls by the wayside in the chaos of driving growth. I very often hear entrepreneurs stating they wished they would have implemented metrics from the outset. Hindsight is 20/20.
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