While a startup is finding a business model through validated learning, it should track the correct metrics for their assumptions and business model.
With Historical data we can analyse and plot the actual improvement or regression over a longer time period. With this data, the startup is one step closer to validate the business model.
Core metric examples
- Paid customers
- Customer retention
- Average subscription length
- Session length per customer
- Referrals per X customers
- Average daily activity per customer
Comparing new customers with old customers or numbers after an event could be a great way to gleam insights of your metrics.
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Make sure your metrics are meaningful.
Reference
Ries, Eric. The Lean Startup: How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses. 1st ed, Crown Business, 2011.
Highlights or timestamps
Defining the right metrics to track and continuously evaluating them is crucial for any startup.
— ^1eb5d6 from The Lean Startup
The right core metrics differ from startup to startup, but often they’re things like increases in number of paying customers, average session length per customer, and number of recommendations generated per, say, 1,000 customers.
— ^52eee5 from The Lean Startup