𝐒𝐭𝐚𝐫𝐭𝐮𝐩 𝐒𝐮𝐜𝐜𝐞𝐬𝐬: 𝐇𝐚𝐫𝐧𝐞𝐬𝐬 𝐭𝐡𝐞 𝐈𝐧𝐬𝐢𝐠𝐡𝐭𝐬 𝐨𝐟 𝐊𝐏𝐈𝐬 𝐄𝐚𝐫𝐥𝐲 & 𝐎𝐟𝐭𝐞𝐧

Founders may be driven by passion - but should be influenced by facts.

Peter Drucker once said, ❝𝑰𝒇 𝒚𝒐𝒖 𝒄𝒂𝒏'𝒕 𝒎𝒆𝒂𝒔𝒖𝒓𝒆 𝒊𝒕, 𝒚𝒐𝒖 𝒄𝒂𝒏'𝒕 𝒊𝒎𝒑𝒓𝒐𝒗𝒆 𝒊𝒕.❞

While key performance indicators (KPIs) may feel like a distant need in startups, capturing the right metrics helps:
1️⃣ navigate fast-paced market dynamics
2️⃣ encourage agility and profitability, and
3️⃣ extends cash flow

Even if you initially lack sophisticated systems and software, tracking critical metrics will best verify your experiments and inform decisions.

Here are some examples of valuable startup metrics:

𝘊𝘶𝘴𝘵𝘰𝘮𝘦𝘳𝘴. Strong satisfaction impacts retention, upsells, cross-sells, and referrals, leading to growth and profitability.

Ideally, use AI tools to seek and track customers' sentiment across multiple platforms. Otherwise, ask customers through email, surveys, and focus groups. 

𝘐𝘯𝘯𝘰𝘷𝘢𝘵𝘪𝘰𝘯. How many new products and services have you launched recently, and how are they affecting your business?

If possible, measure revenue from new products or services within the last year to encourage continuous innovation and adaptation to market needs.

𝘌𝘮𝘱𝘭𝘰𝘺𝘦𝘦𝘴. Your team's engagement prompts customer satisfaction, product innovation, and process efficiency.

Team costs are incredibly high, so assign tasks immediately after hiring to measure performance and ensure responsibilities align with company goals.

𝘍𝘪𝘯𝘢𝘯𝘤𝘪𝘢𝘭𝘴. Ensure you incorporate industry and business metrics into your discussions. For example, a SaaS company should capture CAC, LTV, churn, etc.

Also, scrutinize revenue streams to encourage revenue diversity and pricing models to balance profitability with growth.

𝘊𝘰𝘮𝘮𝘶𝘯𝘪𝘵𝘺. Measure social media activity leading to sales. Do your best to attribute engagement to revenues.

Second, track user communication in forums, webinars, and other platforms. How do they talk about your brand publicly?

💡 Virality and referrals will optimize growth with minimal cost. Experiment ways to increase referrals e.g. new messaging, incentives, and campaigns.

𝗚𝗲𝘁𝘁𝗶𝗻𝗴 𝗦𝘁𝗮𝗿𝘁𝗲𝗱

You may think your startup is too busy and financially strapped to measure results and outcomes. However, consider these insights a valuable investment.

Start by constantly measuring available information, asking stakeholders questions, and always challenging and testing assumptions.

Seeking feedback helps you grow faster and identify changes in the market.

Objective metrics clarify how we want to grow, prevent founders from succumbing to biases, and keep us experimenting to be agile as markets shift.

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This post was written based on my experience, followed by AI editing. Photo generated by AI.