When you’re building a startup, everything feels important. But if you measure everything, you learn nothing.
That’s where KPIs come in. They are the small set of signals that tell you if you’re making real progress or just being busy.
What Are KPIs?
KPIs (Key Performance Indicators) are the most important metrics that track your startup’s progress toward its goals.
KPIs are not just “nice to know” numbers, they’re the core signals your team, investors, and decisions depend on.
Why KPIs Matter for Startups
- Help you track growth, efficiency, and product-market fit
- Keep your team aligned on what really matters
- Give investors confidence in your traction
- Help you make better and faster decisions
Example: Early-Stage SaaS Startup
| Goal | KPI Example |
|---|---|
| Product usage | Daily active users (DAU) |
| Monetization | Monthly Recurring Revenue (MRR) |
| Retention | Net Revenue Retention (NRR) |
| Efficiency | CAC: LTV ratio |
| Conversion | Website-to-signup rate |
You don’t need 20 metrics. You need 3–5 that tell the truth about where you are and where you’re going.
Types of KPIs by Business Model
🚀 SaaS
- MRR / ARR
- Churn rate
- CAC vs LTV
- NPS / CSAT
- Activation rate
🛍️ D2C / E-Commerce
- Conversion rate
- Average Order Value (AOV)
- Repeat purchase rate
- ROAS (Return on Ad Spend)
- Cart abandonment rate
🤝 B2B Sales
- Sales cycle length
- Qualified leads per month
- Deal win rate
- Expansion revenue
- Pipeline coverage ratio
🌱 Pre-Product Startups
- Waitlist signups
- Engagement from prototypes
- Referral/word-of-mouth activity
- Pilot success metrics
- Speed of iteration
Indian Context: What Founders Should Focus On
Indian startups often operate with leaner teams and less capital. So:
- Focus on unit economics and retention early
- Investors want to see traction clarity, not inflated growth hacks
- Offline + online hybrids need blended KPIs (e.g., warehouse utilization + website traffic)
What Makes a Good KPI?
- It’s tied to a goal
- You can influence it through your actions
- It changes over time (not a static vanity number)
- It drives decisions, not just updates
Common KPI Mistakes
- Tracking too many metrics without context
- Chasing “vanity” over “value” (e.g., downloads over DAUs)
- Not aligning KPIs with each team
- Not revisiting KPIs as your stage changes
Pro Tip
Startups evolve. So should your KPIs.
Seed-stage KPIs ≠ Series A KPIs. Revenue may matter more later. Retention may matter more than revenue now.
Final Thought
KPIs aren’t about reporting. They’re about focusing.
If you pick the right few and track them consistently, you’ll know when to push harder, pivot faster, or stay the course without guessing.
Because in a startup, progress isn’t just about moving, it’s about measuring what moves you forward.