The Metrics Mistake
We ignored metrics for the first year.
"We'll add analytics later."
Later came. We needed data. We had none.
Here's what to track from day one.
The Essential Metrics
1. MRR (Monthly Recurring Revenue)
How much revenue you make monthly.
Track: New MRR, Churned MRR, Expansion MRR.
2. Churn Rate
Percentage of customers who leave monthly.
Churned customers / Starting customers.
Target: <5% monthly for SaaS.
3. CAC (Customer Acquisition Cost)
What you pay to acquire a customer.
Marketing spend / New customers.
4. LTV (Lifetime Value)
Total revenue from a customer.
MRR * Average customer lifespan.
Target: LTV > 3x CAC.
The Secondary Metrics
Activation Rate
% of signups who reach "aha moment."
Target: >20% reaching core feature.
Engagement Metrics
Daily Active Users (DAU) Weekly Active Users (WAU) Monthly Active Users (MAU)
DAU/MAU shows stickiness.
NPS (Net Promoter Score)
How likely users recommend you.
Target: >50.
The Implementation
Week 1
Add basic analytics.
Track signups. Track core actions.
Month 1
Add revenue tracking.
MRR. Churn. CAC.
Month 3
Add engagement metrics.
DAU/WAU. Retention cohorts.
The Tools
- Stripe: Revenue metrics
- PostHog: Product analytics
- HubSpot: CRM
Simpler is better.
The Honest Take
Track from day one.
You don't need everything.
But you need something.
Data beats intuition.
