You’re pouring everything into your startup late nights, bold ideas, maybe a few too many coffees. But how do you know if it’s all adding up to something big?
The answer lies in your startup growth metrics and KPIS
The numbers that reveal whether you’re on the path to glory or veering off course.
In 2025, with markets buzzing and competition fierce, tracking the right data isn’t just smart, it’s your lifeline.
This guide dives into 15 must-know metrics, packed with stories like Dropbox’s viral rise and Airbnb’s early hustle, plus practical tips to help you measure progress, charm investors, and build a business that lasts.
Ready to turn your vision into a win? Let’s jump in.
Why Metrics Are Your Startup’s Superpower
Think of metrics as your startup’s pulse, they show what’s thriving and what needs a jolt. Without them, you’re guessing, and guesses sink ships.
Forbes says 90% of startups fail, often because founders miss the signals buried in their data. Metrics cut through the chaos, guiding you to smarter moves.
Just like Dropbox: In 2008, they didn’t just hope people wanted file-sharing; they tracked referral rates like hawks.
Their “invite a friend, get storage” trick grew users from 100,000 to 4 million in 15 months.
That’s not luck; that’s metrics at work. The 15 KPIS below aren’t random, they’re the ones proven to drive growth, keep cash flowing, and make VCS sit up straight.
How to Pick the Right Metrics for Your Startup
Choosing metrics isn’t about grabbing every number you can. It’s about finding the ones that match your goals and stage; otherwise, you’re chasing shadows.
Your Metrics Should Align with Your Mission
Your metrics should reflect what truly matters to your growth. Take Airbnb as an example, in 2008, they were drowning in debt, laser-focused on metrics like customer acquisition cost (CAC) and monthly active users (MAU). By creatively leveraging Craigslist for listings and doubling down on user growth, they skyrocketed to a $10B valuation by 2014 (Airbnb Case Study).
So, ask yourself: What’s my biggest bottleneck, user acquisition, revenue, or retention?
If you’re running a SaaS business, prioritise MRR. In eCommerce? Keep a close eye on your AOV.
Dodge the Metric Traps
Vanity metrics like follower counts can feel rewarding, but they often mask deeper problems. Fab.com is a cautionary tale: despite hitting $100M in sales by 2012, they overlooked poor margins and soaring CAC. By 2015, they had collapsed.
The lesson? Balance flashy growth numbers like MAU with financial health indicators like cash flow. According to a 2024 Gillion report, startups that track both grow 20% faster.
The 15 Must-Track Metrics & KPIS for 2025
Here’s your startup growth scoreboard: 15 must-track business metrics, each broken down with real-world examples, startup success stories, and why they matter for scaling your SaaS or eCommerce venture.
1. Customer Acquisition Cost (CAC)
What It Is: How much you spend to get one new customer. That’s your total sales + marketing cost divided by the number of new customers.
Why It Matters: It keeps you from overspending to grow. For example, Casper slashed their CAC from $1,200 to $300 using influencers, and that helped it hit a $1.1B valuation.
Target: For SaaS, shoot for under $395. Lower is better, but don’t cut corners on quality growth.
2. Customer Lifetime Value (LTV)
What It Is: The total money you expect to earn from a customer during their time with you. Multiply their average monthly spend by how long they stick around.
Why It Matters: It tells you if customers are worth the cost to acquire. Netflix, for instance, reached a $450 LTV in 2023 thanks to crazy-good retention.
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Target: Your LTV should be at least 3x your CAC. If CAC is $400, LTV should be $1,200+.
3. Churn Rate
What It Is: The percentage of customers who leave (unsubscribe, stop buying, etc.) in a given time frame, usually monthly or yearly.
Why It Matters: High churn is like filling a bucket with a hole in it. Spotify brought theirs down from 7% to 4.5% by investing in podcasts (Spotify Blog, 2016). That move saved them millions.
Target: Keep it below 5% monthly for SaaS.
4. Monthly Recurring Revenue (MRR)
What It Is: Your predictable, subscription-based revenue each month.
Why It Matters: It’s your heartbeat, a steady, reliable income. Slack grew MRR 110% in 2015 by focusing on team workflows and hit $200M by 2017 (Forbes).
Tip: Break MRR down into new, expansion, and churned for clarity.
5. Annual Recurring Revenue (ARR)
What It Is: Your monthly recurring revenue times 12. Think of it as your yearly subscription income.
Why It Matters: It’s investor bait. Zoom’s ARR reached $4B in 2021 during the remote work boom (Forbes).
Target: Hit $ 10 M+ ARR, and you double your odds of raising big;.
6. Revenue Growth Rate
What It Is: How fast your revenue is growing, measured in percentage over time (monthly, quarterly, yearly).
Why It Matters: It shows traction. Shopify’s 86% growth in 2020 drove $2.9B in revenue.
Target: Early-stage startups should aim for 20–30% monthly growth (LivePlan, 2024).
7. Gross Margin
What It Is: Your revenue minus the cost of goods sold, shown as a percentage.
Why It Matters: It's your profit potential. Warby Parker had a 70% gross margin in 2022, which helped fuel their expansion (Warby Blog).
Target: SaaS? 60–70%. E-commerce? 30% + (Forbes, 2024).
8. Burn Rate
What It Is: The amount of cash you’re spending every month to run the business.
Why It Matters: It shows how fast you’re using your cash. Base Power kept theirs at $500K/month while raising $200M in 2025. Meanwhile, Theranos burned $2M/month, with zero revenue. Disaster.
Tip: Keep burn under ⅓ of your cash reserves.
9. Cash Runway
What It Is: How many months can your company survive at the current burn rate?
Formula: cash ÷ burn rate.
Why It Matters: It’s your countdown clock. Buffer stretched their runway to 18 months in 2013 and avoided going under.
Target: 12+ months is a safe zone.
10. Net Promoter Score (NPS)
What It Is: A score from -100 to 100 that shows how likely your customers are to recommend you.
Why It Matters: It measures customer love. Apple had an NPS of 72 in 2023, and that helped drive repeat purchases (Apple Insights).
Target: 50+ is great. Run surveys using Typeform or Delighted.
11. Monthly Active Users (MAU)
What It Is: The number of unique users who interact with your product or app each month.
Why It Matters: It tells you how sticky your product is. TikTok hit 1B MAU in 2021 thanks to viral content.
Target: Aim for 10–20% monthly growth in early stages.
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12. Average Order Value (AOV)
What It Is: The average amount customers spend in a single transaction.
Why It Matters: It directly impacts revenue. Amazon boosted AOV to $75 by bundling Prime perks and product suggestions.
Tip: Use bundles or upsells to increase AOV by 10% or more.
13. Cash Flow
What It Is: The net amount of money flowing in and out of your business over time.
Why It Matters: Without positive cash flow, your business dies, period. Tesla finally went positive ($1B) in 2019 and turned the corner.
Stat: 42% of startups fail due to cash flow issues.
14. Referral Rate
What It Is: The percentage of your users who refer new users.
Why It Matters: It powers organic growth. PayPal’s $10 referral bonus helped them grow 7% daily back in 2000 (PayPal Case Study).
Tip: Incentivise referrals with perks or cash rewards.
15. Lead Conversion Rate
What It Is: The percentage of leads (potential customers) who become paying customers.
Why It Matters: It tells you how well your funnel works. HubSpot saw 10% conversions using free tools, 5x the industry average (HubSpot, 2023).
Target: 5–7% is strong for SaaS (Gilion, 2024).
How to Track and Analyse Your Metrics
Knowing what to track is step one; how you track it brings it home.
Tools to Make It Easy
Groove, a SaaS startup, used Baremetrics to spot churn trends, doubling retention in 2014 (Groove Blog). Try these:
- Google Analytics: MAU, referrals, AOV.
- QuickBooks: Cash flow, burn rate.
- Mixpanel: LTV, churn, NPS. Start free, scale as you grow—most have 30-day trials.
Set Smart Benchmarks
Asana aimed for 15% MRR growth in 2015, hitting $100M ARR by 2020 (Asana Blog). Compare to industry norms (5% churn, $395 CAC) and your own past data. A 2024 LivePlan study says startups with clear benchmarks grow 15% faster. Review monthly for trends, weekly for quick fixes.
FAQs
1. What is a KPI in a startup?
A Key Performance Indicator (KPI) in a startup is a measurable value that tracks progress toward critical business objectives, such as startup growth KPIs and metrics like revenue, customer acquisition, or retention. KPIs help startups focus on what drives success.
2. What are startup metrics?
Startup metrics are quantifiable measures used to evaluate performance and growth, including startup growth KPIs and metrics like Monthly Recurring Revenue (MRR), Customer Acquisition Cost (CAC), Churn Rate, and user engagement. They provide insights into operational and strategic health.
3. What are KPIs for company growth?
KPIs for company growth focus on startup growth KPIs and metrics such as Revenue Growth Rate, Customer Lifetime Value (CLV), Net Promoter Score (NPS), and Market Share Expansion. These track scalability and market traction.
4. What are the 4 Ps of KPI?
The 4 Ps of KPI are a framework for defining effective startup growth KPIs and metrics: Purpose (aligns with business goals), Process (measures workflows), Performance (tracks outcomes), and Progress (monitors strategic advancement).
5. What are the four main KPIs?
While specific KPIs vary, four common startup growth KPIs and metrics include: Revenue (MRR/ARR), Customer Acquisition Cost (CAC), Churn Rate, and Net Promoter Score (NPS).
6. What is KPI and metrics?
KPIs are specific, strategic metrics tied to business goals, while metrics are broader data points tracking various activities. For example, MRR (a KPI) versus total website visits (a metric).
7. How to measure the success of a startup?
Measure startup success using startup growth KPIs and metrics like revenue growth (MRR/ARR), customer retention (Churn Rate), profitability (Net Margin), user engagement (Daily Active Users), and funding milestones or market share.
8. What are the 4 key metrics for software?
For software startups, key startup growth KPIs and metrics include: Monthly Recurring Revenue (MRR), Churn Rate, Customer Acquisition Cost (CAC), and Customer Lifetime Value (CLV).
9. What is the difference between GMV and ACV?
Gross Merchandise Value (GMV) is the total value of goods sold through a platform, often used in marketplaces. Annual Contract Value (ACV) is annualized revenue from a single customer contract, common in SaaS. Both measure different revenue aspects.
10. What is a growth metric?
A growth metric is a data point tracking expansion, such as startup growth KPIs and metrics like revenue growth rate, user acquisition rate, or market penetration. It reflects a startup’s scalability and traction.
Conclusion
Tracking the right growth metrics isn’t just a vanity project, it’s how smart startups stay alive and scale faster. From CAC to cash flow, each number tells a story about what’s working and what needs fixing. But here’s the truth: even the best metrics won’t matter if your product isn’t solving a real problem. That’s where MVP development services come in.
By building a lean, validated version of your product, you’re not just saving money you’re collecting real data from day one. Whether you're a SaaS founder or an eCommerce innovator, working with the right MVP development partner can help you test assumptions, track meaningful metrics early, and set your product up for sustainable growth. Don’t guess build, measure, and grow with purpose.
Murtuza Kutub
A product development and growth expert, helping founders and startups build and grow their products at lightning speed with a track record of success. Apart from work, I love to Network & Travel.
