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Why Misunderstanding Startup Metrics Can Cost You Your Business

Both Sides of the Table

There has been a lot of public debate over the past several weeks about whether it’s a good thing to be “gross margin positive” or not and commentary always reminds me that some people at startups don’t quite understand financial metrics or even how to think about which ones are healthy. And of course ultimately on profitability.

Metrics 150
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Conversion, retention and churn benchmarks

VC Cafe

This is a question startup founders ask themselves multiple times a week. Understanding the benchmarks on conversion, retention, and churn for your business is therefore critical. Understanding the benchmarks on conversion, retention, and churn for your business is therefore critical. How are we doing?

Retention 109
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Product Design for SaaS Startups: Best Practices and Examples

ReadWriteStart

I’ll start by taking you to the world of Startup X, a passionate team of entrepreneurs who believed they had the next big thing in the world of software as a service (SaaS). It’s disheartening, but sadly, this is one experience that many startup founders face. Do you find yourself and your project in a similar position?

Design 105
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Fast Growing Startups Focus on Customers

The Startup Magazine

Startups have only one way of thriving, and that is through growth. Every startup company that grows very fast understands the complexity that comes when scaling operations. There are various reasons as to why fast-growing startups spend time monitoring their customer success rate. What fast growing startups should do.

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The only 2 ways to build a $100 million business

Version One Ventures

The biggest driver for high LTV is repeat purchase behavior (in an e-commerce business) respectively a low churn rate (in a SaaS company). As a VC, the biggest challenge in evaluating LTV models is that metrics can dramatically change at scale. That unfortunate combination makes it rather difficult to reach the $100M mark.

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Leading Indicators of Customer Churn, And What to Do About It

ConversionXL

We’ll focus on voluntary churn, because voluntary churn has actionable prevention steps by SaaS providers, while involuntary churn is mostly unavoidable, like when a user has to stop SaaS subscription services due to death, relocation, etc. If you’re unsure, you can learn how to calculate your churn rate here.

Customer 110
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Acquire New Users by Adding Growth Hacking to your Marketing Strategy

ConversionXL

Startups need to survive and thrive on a shoestring budget, which is why it’s based on rapid experimentation. How to create a growth hacking strategy using the pirate metrics model. In the activation phase, measure these performance metrics: Conversion rate Number of customers using a product feature Drop-off rate Dwell time.

Retention 113