The one metric that matters

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Today’s startups are more data-driven than ever. We can measure and optimize so many aspects of our businesses.┬áThat’s a good thing. But, sometimes, we can get lost in all that data. And if you’re lost as a founder or exec team member, imagine how lost the rest of the team must be!

If you’re an individual contributor at a growing company capturing lots of data, how do you know what metrics matter? And how do you know whether the results you have for those metrics are good or bad?

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Saas Math: Customer vs. Revenue Churn

As I’ve mentioned many times before: churn (the rate at which customers cancel their subscription) is the most important metric for any recurring revenue business. This should make sense. The longer a customer keeps paying you, the more valuable that customer is.

In a previous post, we looked in depth at churn. Most companies when they look at churn look at customer counts: how many customers did we start the month with? How many of those did we lose? Divide the lost customers by the beginning customers and you have a basic measure of churn.

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The One Page Seed Stage Dashboard

I recently prepared this template for one of our portfolio companies and thought I’d share it. I’m a big fan of dashboards as a quick way to get a grasp on our companies. I believe all successful startups are data driven. So having a dashboard that everyone sees regularly keeps people focused.

This dashboard works for pre-revenue startups that are focused on building that initial user base. As a seed investor when we make an investment we do so with the following goals in mind:

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The E-Commerce Dashboard

I see lots of posts on the interwebs about SaaS metrics but rarely see the same for e-commerce. Both are data driven and so capturing the right metrics in a dashboard is a key success factor. So without further ado, here is the dashboard we built at Modasuite.

If you don’t know this company, they sell sophisticated and accessible menswear in either ready to wear or made to measure, whichever you prefer. I removed some of the metrics we track around our made to measure business since that is more unique but the rest should apply to your e-commerce business. Continue reading The E-Commerce Dashboard