How do you know if your young business is healthy and has a viable business model? Do you keep tabs on marketing efforts and if they are working as efficiently and effectively as they could? How can you gauge the likelihood of outside parties being willing to invest in your business?
Across business types, there are set of core business metrics that will help answer these, and many other questions:
- Customer Acquisition Costs (CAC): How much money you have to spend to acquire a single customer.
- Lifetime Value (LTV): How much profit you'll derive from a customer during the duration of time they stick with your product, service, or business.
- Payback Period: How long it will take you to recoup your expenses.
- Retention Rate: How many customers you are able to keep over a certain period of time.
In the presentation below, we'll cover why any business—no matter if you're B2B SaaS, e-commerce, home services, or something else entirely—needs to be on top of these metrics every step of the way, and how to get started measuring them.