Understanding metrics that matter in the product journey is important for a startup like yours. These metrics power growth and help you become data-informed. Let’s find out more about it from Ramneek Khurana, Co-Founder & Head of Product & Technology, Lenskart.
Lenskart is a leading e-commerce portal in India that revolutionized the eyewear industry with its omnichannel approach. Take a look at this blog to find more about the vital metrics in detail.
How Data Can Be a Powerful Tool for a Startup’s Growth Journey?
Leveraging data depends on the stage of the startup. One needs to balance qualitative and quantitative inputs. When a startup begins, quantitative data may not be enough. Thus, relying on qualitative data is helpful.
As startup scales, multiple metrics like new user acquisition, average revenue per user, gross to net, and Net Promoter Score (NPS) come into the picture. It is always possible that an increase in any other metrics can impact the other ones. Hence, defining data metrics beforehand can help startups build the right growth strategy.
Creating monthly and daily dashboards to get a quick view using a plethora of tools and building data democracy also plays an important role.
What are Important Metrics for Scaling Startups Rapidly?
As Ramneek suggests, “Important metric we look at is the net promoter score (NPS)”. A business with very high NPS is a strong indicator that it’ll always grow. Having clarity on the number of consumers and NPS is helpful because it is one metric that needs to be driven. It makes sure that a company grows.
If you can solve the problems of customers who haven’t taken any action, it is 60% possible that they’ll make a purchase. These are the metrics that may not be easily available, but they need to be available to everyone to analyze them.
What is a Good Measure of Customer Conversion?
Customer conversion can be divided into two buckets for startups that are:
- Horizontal in nature
- Vertical in nature
The startups horizontal in nature, have a lower conversion rate of about 1-2%. These are marketplaces where people come to check out new products every now and then.
The startups vertical in nature tend to have a higher conversion rate of about 5-10% because people come for a specific need. These may include platforms that cater to a specific line of businesses like fashion and many more!
How Can Payment Solutions Impact a Product?
Payment gateways like PayU, bring in value-added services like Buy Now Pay Later and EMIs that create a direct impact. With the increase in usage of UPI and reduction in payment failures, there’s an uptick in payment solutions like subscriptions. Payment solutions like this increase average ticket size because customers get better payment options.
To find out more about metrics that matter the most in the product journey, check out this video.
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