Key Performance Indicators (KPIs) are the magic metrics you monitor obsessively to determine if your company is on the right track or not. Setting up the right set of numbers to track, sometimes feels equal parts science and mystery. It’s easy to track the wrong things and send your company on a wild goose chase.
Nearly ten years ago (gosh — time flies!) Dave McClure of 500 Startup-fame formulate his AARRR metrics (“Startup Metrics for Pirates”). It is a simple framework which puts numbers behind the typical steps of the customer acquisition funnel:
- Acquisition
- Activation
- Retention
- Referral
- Revenue
To this day I find this framework one of the easiest, most robust and relevant to use — it focusses on what matters, cuts out the fluff and is typically easy to measure.
Check out Dave’s post with links to videos and his deck. And become a startup metrics pirate!