KPI is a very relevant metric for measuring the performance of a strategy and management processes. The Key Performance Indicator is also called a Key Performance Indicator.
Simply put, Performance Indicators exist to make successful strategies possible. After all, without constantly monitoring the performance of your business's actions, success will be just a distant dream.
Importance of establishing and measuring KPIs in your startup
When we talk about startups, an almost natural synonym is investing and undertaking in unstable scenarios. Therefore, KPIs for startups help predict what the future of this business will be like.
Keep in mind that decision-making becomes much easier and more assertive when you have a clear and precise vision of what is right and wrong. In fact, angel investor and Head of KICK Ventures , Rodrigo Quinalha, believes that startup founders cannot expect to grow blindly without being almost “obsessive” with their KPIs.
Furthermore, focusing solely on the numbers is ukraine whatsapp data not enough. It is necessary to understand the ways in which the indicators benefit and harm the startup and also identify the reasons why they decrease or increase.
Remember that with the guidelines defined, it becomes easier to understand which goals are most important for a sustainable future for the startup.
And to give you a little push on the right path, we have selected the most important KPIs that a startup should not ignore. Check them out below!
Main KPIs to measure and monitor the evolution of your startup
CAC – Customer Acquisition Cost
This KPI is calculated by adding up all your customer acquisition expenses, divided by the number of customers acquired in a given period. CAC costs include all marketing and sales actions involved in prospecting new customers.
Customer Acquisition Cost is one of the most important KPIs for startups, as it shows how much financial effort was made to acquire customers. Keep an eye on this KPI. If the value is too high, you need to review your expenses to make ends meet.
To better visualize, consider the following example: Investment of R$100.00 in an AdWords campaign, with the acquisition of 200 new customers. This means that the CAC was R$0.50.
Also, be careful that the CAC does not exceed the revenue that each customer generates.
CAC return time
In a scenario where you spend more money to acquire a customer than they generate in revenue, it is not enough to just know the cost value, you need to start measuring the CAC Payback Time.