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Why every startups need metrics!

Why every startups need metrics!

In this article, we are taking a deep dive into why young companies should track their metrics right from the get go! Below are three reasons to start today if you are not doing it already!

Before we dive into the reasons why startups need to monitor their metrics, we must first take a look into a few misconceptions as to why early stage startups currently do not emphasize on metrics.

Misconception #1: “I am not tech savvy enough to monitor my metrics!”

HBO’s Silicon Valley —Dashboard

Don’t be scared! You do not have to be super tech savvy to get your metrics!
Nowadays, there are many tracing tools that can help you clearly track your metrics whether they be online or offline. For examples of easy user dashboards, send me an email.

Misconception #2: I do not have enough data to even track them!

You have to start somewhere! Start at 0 users! Keep in mind that that is the same starting point that Facebook, Google, Apple, that hair salon down the street all started at! The important thing is to JUST DO IT! did you think they waited until they had 500 or 5 million users before they started to track their basic metrics? NO!

3 Reasons why startups need to start measuring their progress now!

1. Make your targets

Knowledge is power! Learning about your metrics can only help your team meet target quarterly or monthly goals. For a great example for early stage startups, I refer you to the Lean Analytics book by Alistair Croll and Ben Yoskovitz. They created great chart to show what lean metrics you show focus on depending on what stage you are at.

Lean Analytics Book: Use Data to Build a Better Startup Faster

Startups tend to focus on a lot of things that are not their short term targets. For a deeper dive, check out this article: https://medium.com/@VenturX_team/3-startup-mistakes-what-do-young-startups-focus-on-besides-their-metrics-9a59f17d84e8

2. Not waste time and money on the wrong things

Time is money! Key performance metrics (KPIs) may differ from department to department in big corporations. Early stage startups should see this as an advantage. As the teams are small, everyone can just focus on one or two key metrics and have that be focus on where resources, time, and money is invested in. Once that goal is achieved, you can make another goal. That is exactly what metrics do. If you don’t have a particular goal in mind, track tools like VenturX can help you industry benchmarks for early stage startups.

3. Helps prioritize your tasks — things that move the needle

When early stage startups go through the feedback cycle (build, test, analyze, and repeat), having your key metric(s) can help your team prioritize which task to focus on for the next product release or the next product iteration.
For example, if your key metric is to increase engagement because it is low, then your team make want to prioritize the features that would keep your customers using the product for longer. You may also want to de-prioritize other features related to marketing channels and conversions.

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Posted by VenturX

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