Key Metrics for a Business
I had created a list of metrics to track and put them up on the whiteboard at my
home to remind myself of how important it is for us to track these
Whether it is a start-up or a traditional business, it is critical to measure a
few important metrics for the founder/entrepreneur:
1. Growth Metrics - This covers the overall impact the business is creating as
it grows every day - and every business measures it differently but some
important ones are Active Users or Clients/Partners
2. Unit Economics - The most critical set of metrics for any business, it helps
one understand if they make money on a per unit level. Customer Acquisition Cost
(CAC), Revenue, Opex and Unit Margin are important metrics there
3. Funnel Metrics - Every business needs to measure the efficiency of their
customer acquisition process. Funnel metrics like Approval or Conversion Rates
and Drop off Rates help Sales Teams understand gaps and communicate to the
Product teams to plug
4. Portfolio Metrics - One can slice and dice their customer base in various
ways to understand if their assumptions about their customer segment and market
base are true or not. Profiling the portfolio provides insights to the Strategy
Teams
#business #startup #metrics #founders #lending #fintech
Posted by Anubhav Jain on LinkedIn
link: linkedin.com/in/anubhav1106
I had created a list of metrics to track and put them up on the whiteboard at my
home to remind myself of how important it is for us to track these
Whether it is a start-up or a traditional business, it is critical to measure a
few important metrics for the founder/entrepreneur:
1. Growth Metrics - This covers the overall impact the business is creating as
it grows every day - and every business measures it differently but some
important ones are Active Users or Clients/Partners
2. Unit Economics - The most critical set of metrics for any business, it helps
one understand if they make money on a per unit level. Customer Acquisition Cost
(CAC), Revenue, Opex and Unit Margin are important metrics there
3. Funnel Metrics - Every business needs to measure the efficiency of their
customer acquisition process. Funnel metrics like Approval or Conversion Rates
and Drop off Rates help Sales Teams understand gaps and communicate to the
Product teams to plug
4. Portfolio Metrics - One can slice and dice their customer base in various
ways to understand if their assumptions about their customer segment and market
base are true or not. Profiling the portfolio provides insights to the Strategy
Teams
#business #startup #metrics #founders #lending #fintech
Posted by Anubhav Jain on LinkedIn
link: linkedin.com/in/anubhav1106
