13/11/2019 0 Comment

Key startup metrics to be market-ready

Business needs never cease to exist, they just happen to evolve to present themselves in the most incomprehensive and complex mannerism. Early when a startup is still bootstrapping, it is all right to focus on revenue generation and profitability of the business, but as you grow you need to better metrics to track your performance. Here are a few startup metrics that will help you have an in-depth view of performance and financial metrics to spot any upcoming pitfalls in your smooth business journey. 

Top 4 startup metrics for any business

1. Customer Acquisition Cost (CAC) 

The cost of acquiring a new customer is one of the most important aspects of any business. One way to calculate CAC is to pick a specific period and then divide the cost of marketing and sales with the number of customers you have gained. It is one of the easiest ways to do it. For example, if you acquired 20 customers by investing $1000, the CAC is $50. 

A lower CAC is thus always better, however, there are various factors involved that define the “lowest” value of CAC for any industry. For example, CAC for a food business will always be higher than that of a mobile cable manufacturing company. 

A sharp rise in CAC is a red flag, but if you have introduced a new product or a service it is expected to be experienced by any startup. Most of all, the CAC is not evaluated in vacuum for any business, it needs conjunction with the other number of metrics mentioned in the blog. 

Must Read: How AppVoir’s custom mobile application empowers entrepreneurs to get seed funding?

2. Retention Rate

Second in the list of startup metrics is retention rate, it evaluates the percentage of consumers you can hold or engage with your brand and the percentage of the consumers that have leftover a given period. If you are selling a subscription-based product, it is one of the most fruitful metrics for you. 

There are other ways to calculate the retention rate, but due to its complication, the above-mentioned formula is most recommended. Or you can calculate it by, subtracting the number of new customers from the total customers at the end of a particular period and divide the number by the number of customers you have started the period with.  

A person can also calculate the churn rate in very simple terms if a person has 100 customers at the start of the month and the end of the month has 97, it means the churn rate is three percent. The goal is to keep the retention rate as high as possible or your churn rate as low as possible. 

3. Customer Lifetime Revenue (CLR)

It is also known as customer lifetime value; the metrics help in measuring the revenue that is received from repeat customers. It is one of the toughest to predict in the early stage of the business as you require data. Once you have received a reasonable amount of data, you can start by making guesses. To fasten the process, you require a market-ready application. CLR is important to know because with that you can determine your affordability in CAC. The greater lifetime revenue for a customer, the more you can spend to acquire leads. 

4. Return on Advertising Spending 

Unless you can afford to do brand awareness marketing, advertising spent is an investment that helps you create a foothold in the market. ROAS thus calculates the returns on the advertising spent. To calculate it, divide the sales generated by your advertising spending. If you are spending on multiple channels the calculation becomes more and more complex. It is advisable that you must choose targeted marketing strategies and that makes your marketing effective and evaluation of ROAS easier. Get an app that comes with market-ready solutions to make it happen. 


The afore-mentioned metrics will help you big-time in managing your business better. In case you are thinking about making an online debut with your business idea, AppVoir can help you endlessly right from development to implementation to maintenance. For more, interesting information keep reading our blogs. 

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