KPI
Definition
KPI: A Key Performance Indicator (KPI) is a quantifiable measure used to evaluate success in meeting objectives. For startups, KPIs typically include metrics like MRR, churn rate, CAC, LTV, and activation rate. Effective KPIs are specific, measurable, and directly tied to business outcomes. Teams should focus on 3-5 KPIs maximum to avoid metric overload.
Example Usage
“Our three main KPIs this quarter are activation rate, net revenue retention, and CAC payback period.”
Common Misconceptions
Related Terms
North Star Metric
A North Star Metric is the single metric that best captures the core value your product delivers to customers. It serves as a company-wide focus point...
OKR
OKRs (Objectives and Key Results) is a goal-setting framework that defines objectives (what you want to achieve) and key results (measurable outcomes...
Monthly Recurring Revenue
Monthly Recurring Revenue (MRR) is the predictable revenue a subscription business expects to receive every month. It's calculated by multiplying the...
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