The top 21 metrics for startups to track

Startups often falter by launching without a clear grasp of key performance indicators (KPIs) or by focusing on vanity metrics that lack actionable insights. To thrive, it's crucial for startups to define and interpret metrics effectively from the beginning. Essential metrics include bookings versus revenue, which offer insights into sales performance and financial health, and recurring revenue versus total revenue, which help assess income stability. Understanding gross profit aids in pricing and cost management, while metrics like Total Contract Value (TCV) and Annual Contract Value (ACV) provide long-term customer relationship insights. Lifetime Value (LTV) assists in evaluating customer acquisition costs, and Gross Merchandise Value (GMV) versus revenue is vital for marketplaces. Other critical metrics include unearned revenue, customer acquisition cost (CAC), gross margin, burn rate, runway, active user engagement, churn rate, downloads, activation rate, retention rate, and Net Promoter Score (NPS). These metrics collectively guide startups in financial planning, marketing strategy, product development, and customer retention, fostering data-driven decision-making for sustainable growth.