Today we’re discussing the process of selecting metrics for your startup.
1. Keep it simple.
Aim for no more than 4 key metrics. For most companies, anything more is just wallpaper. The metrics you choose should focus on: distribution, engagement, revenue, and churn.
2. Pick challenging metrics.
Make sure your metrics hold your company accountable from the start. “Monthly Active Users” is useless compared to “Daily Active Users”, or tracking users who engage with your service at least 5 days a week.
3. Build consensus.
Your team will need to focus on and optimize your chosen metrics, so it’s best to gather feedback and input before making the final decision on which metrics to monitor.
Best of luck out there.
Sterling Road invests in idea stage and pre-seed B2B startups based in the US, Canada and UK.
