Check out the essentials you need to know about metrics and unit economics prepared by Thibaut Claes (thibaut@startups.be). Learn more and get investor-ready via: www.startups.be/fundraisingStartups.be

1. Metrics & traction
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Thibaut Claes
thibaut@startups.be

2. Agenda
• Why metrics?
• Vanity metrics
• Funnel
• Actionable metrics & unit economics
• Examples
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3. Why
« What you can’t measure, can’t be improved »
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4. Why
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5. Why
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6. Why
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7. Why
• You need control / anticipation
• You need preparation for quick moves
• You need to explain what you did, why you did it, how
you did it and what are the
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8. Why
• You need to explain
• What you did
• Why you did it
• How you did it
• What were the consequences
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9. Why
« Metrics are first for you as a business owner/manager
and then for your (next) investors »
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10. Vanity metrics vs Actionnable metrics
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11. Vanity Metrics
• # visitors
• # users
• # downloads
• #followers on social networks
• # subscribers @ newsletter
These metrics make sense but have less importance than
you think
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12. Funnel
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13. Funnel
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Twoodo.com

14. Funnel
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Metrilo.com

15. Funnel
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16. Funnel
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17. Sources of traffic
Conversion rate is key
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18. Sources of traffic
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19. Sources of traffic
• ORGANIC
• Content/blogpost
• SEO
• Referrals
• Social networks (free)
• Direct traffic
Be careful, nothing is FREE
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20. Sources of traffic
• PAID
• SEM
• Social network (ads)
• Affiliation / reseller agreement
• Retargeting
• Conference
• Partnerships
• Outbound sales
Google Analytics can help you defining sources of traffic
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21. Sources of traffic
EXAMPLE
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22. Actionnable metrics
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23. Metrics - Evolution
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Baremetrics.com
METRICS & UNIT ECONOMICS
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24. Metrics – Links/Relations
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Forentrepreneurs.com
METRICS & UNIT ECONOMICS
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25. Metrics for Sales & Growth
• (New) ARR/MRR or GMV or Revenue
• Recurring Revenue vs Total Revenue
• DAU vs WAU vs MAU
• # transactions
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26. Metrics for Sales & Growth
• ARPU (Average Revenue Per User)
• ACV (Annual Contract Value)
• AOV (Average Order Value)
• (Gross Margins)
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27. Metrics for Marketing & efficiency (SAAS)
• Revenue (expansion/upsell)
• CAC (Customer Acquisition Cost)
• Total Marketing&sales spent/ # new customers *
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28. Metrics for Marketing & efficiency (SAAS)
• Churn rate in revenue or #customers
• Lost customers/revenue per period
• Gross Churn rate
• #customers in month x that are there in month x+1
• Net Churn rate
• #revenue with customers in month x that are there in
month x+1 PLUS expansion
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29. Metrics for Marketing & efficiency
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For Entrepreneurs
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30. Metrics for Marketing & efficiency (SAAS)
• (C)LTV (Life Time Value)
• Total revenue an « average » customer will bring
• « Simple » LTV calculation : 1/ churn rate
• « Simple » CLTV calculation : MRR (revenue)/ churn rate
• (C)LTV (Life Time Value)
• We can’t consider that someone will stay forever, then you
need to « cap » the Life Time of a user/customer
• LTV calculation : (1-(1-churn rate)^#max months)/churn
rate
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31. Metrics for Marketing & efficiency (SAAS)
• Payback Period
• Months needed to recover CAC
• MRR (or other revenue)/CAC
• LTV/CAC
• Measure efficiency to cover the costs of acquisitions and
other cotst
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32. Metrics for Marketing & efficiency
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For Entrepreneurs
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33. Metrics for Marketing & efficiency (cohort)
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Kissmetrics.com
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34. Metrics for Customer success
• Responding time to user request (per channel)
• #requests/month
• NPS (Net Promoter Score)
• #(9&10) – (1to6)
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NPS calculator
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35. Metrics for Marketplaces
• #(new) listings
• #listing fulfilled
• #bids/listings
• #listing/#listing fulfilled (Demand fulfilment)
• Average period to fulfill listing (Liquidity)
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36. Metrics for Marketplace (buyers-sellers)
• # transactions/ user (buyers or sellers)
• #transactions/user/year (repeatability)
• GMV or ARPU/ user
• CAC/user (blend & paid)
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37. Metrics for product
• # bugs tracked this month
• #bugs solved this month
• Average time to (start to) solve a bug
• Average loading time of product/page
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38. Other Metrics
• Burn rate
• Salaries
• # team members
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39. Other Metrics
Evolution of these metrics is key to
know how to act
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40. Metrics
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Techcrunch.co
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41. Tools
• Google Analytics
• Kissmetrics
• Mixpanel
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42. Sources
• SAAS
• Christoph Janz (Point9)
• David Skok
• Tom Tunguz (Redpoint)
• Jason Lemkins (Saastr)
• Social Capital
• Chartmogul
• Kissmetrics
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43. Sources
• Marketplace
• Version One VC
• Point Nine Capital
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44. Any question(s)?
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Thibaut Claes
thibaut@startups.be
@thibclaes

45. Other Efficiency Metrics (Serie A/B stage)
• Operating Expense Ratio
• Salaries expense / revenue
• Magic Number
• (Revenue Q+1 – Revenue Q)/ S&M Q
• Quick Ratio
• (New Mrr + Upsell) / (churn MRR + downsell)
• Sales cycle
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