The Metrics That Actually Matter
Pick a small set of numbers that map to survival: activation, retention, revenue, CAC, LTV, and burn. Track them weekly. Everything else is noise.
#data
Most startups drown in metrics. The best startups obsess over a small set.
Product health
- Activation , % of new users who hit the “aha moment”
- Retention , are users coming back day 1, 7, 30?
- Engagement , depth of usage, not just visits
Business health
- MRR / ARR , recurring revenue
- CAC , cost to acquire a customer
- LTV , lifetime value of a customer
- Churn , % leaving each month
- Burn and runway , months of cash left
If LTV is not meaningfully bigger than CAC, you do not have a business , you have an expensive hobby.