KPI (Key Performance Indicator)

Understanding KPIs

Key Performance Indicators (KPIs) are metrics that organizations use to evaluate their progress toward specific business objectives. KPIs are essential for tracking performance and identifying areas for improvement. They can be used across various functions, including marketing, sales, finance, and product development, to gauge success and make data-driven decisions.

Common Startup KPIs

• Customer Acquisition Cost (CAC): Measures the cost of acquiring a new customer.
• Customer Lifetime Value (CLTV): Indicates the total revenue a customer is expected to bring in.
• Monthly Recurring Revenue (MRR): Tracks predictable revenue generated from subscriptions.

Related Terms and Concepts

Metrics, data-driven decision-making, business goals, performance measurement