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The Most Important KPIs Every Startup Should Track

🔸 Customer Acquisition Cost (CAC)

🔸Life Time Value (LTV)
🔸CAC Recovery Time
🔸Customer Churn Rate (CCR)
🔸Average Ticket Price (ATP)
🔸Revenue growth rate (RGR)
🔸Monthly Recurring Revenue (MRR)
🔸Annual Recurring Revenue (ARR)
🔸Average Revenue Per User (ARPU)
🔸Average Revenue per Subscription (ARPU)
🔸Burn Rate
🔸Runway 
🔸Cost of Goods Sold (CoGS)
🔸Gross Profit Margin (GPM)
🔸LTV/CAC Ratio

1- Customer Acquisition Cost (CAC) :
CAC is the amount of money you need to spend on sales, marketing and related expenses, on average, to acquire a new customer
2- Life Time Value (LTV):
It is the measurement of the net value of an average customer to your business over the estimated life of the relationship with your company. Understanding this number, especially in its relation to CAC, is critical to building a sustainable company.
3- CAC Recovery Time (or months to recover CAC) :
This KPI measures how long it takes for a customer to generate enough net revenue to cover the CAC.
CAC recovery time has a direct impact on cash flow and, consequentially, runway.
4- Customer Churn Rate (CCR):
It is the percentage of customers lost during a period of time. A churned customer is one who has canceled the subscription or a customer who has failed to make a purchase within an average timeframe. It is the KPI that shows how fast your startup is losing customers.
5- Average Ticket Price (ATP) :
the Average Ticket is the ratio between the total sales volume and the amount of sales made in the period.



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