Measure success: Growth KPIs
The Problem
You are working every day on your product, you might be getting sign ups and paying customers but does that mean you are growing?
How do you know where are the bottlenecks in your growth? or if your customers are getting value and won't churn soon?
This is where the Growth KPIs help.
Growth KPIs
There are 3 KPIs to measure here:
- Number of people showing interest
- Number of people who signed up and paid
- Number of people who received value (success)
For #1, you measure that for example by sign up page visits or people responding to your cold approach with interest.
For #2, those are now your new customers for this period
For #3 and the most tricky yet most important one, it depends a lot on your product or service
Where is the AHA! moment where a user receives value from your product or service?
For example if you offer a newsletter app (ex: MailChimp) it might be the first time users send a newsletter OR the first time they get a new subscriber OR the first $ they make from a newsletter, depending on what you believe is the best value add for your app.
The goal is to have a measurable way to identify users who are reaching success with your product or service to make sure you are growing sustainably.
Measure, review and improve
You want to measure your Growth KPIs weekly and then review them end of the month and ask yourself where are the KPIs lacking or slowing down?
For example you might be getting interest but no sign ups, or sign ups but no or very few successes.
Then you can review the bottlenecks and improve.
Credit: learned about Growth KPIs from Leigh Sherman (startup coach)
