Been tracking the usual suspects like MRR and churn but wondering if I’m missing the bigger picture.
What framework actually shows you’re building something sustainable vs just growing vanity metrics?
Look at customer acquisition cost against lifetime value. It’s not just about growth but sustainable growth.
Track how many customers are still paying after 6 months. That’s your real health check.
I’ve seen startups hit impressive month 1 numbers but lose 80% of users by month 6. The retention curve flattens out around that point - if you can keep people engaged past 6 months, they usually stick around much longer.
Pair that with expansion revenue from existing customers. Are people upgrading or buying more features? That’s way more valuable than constantly hunting for new users to replace the ones leaving.
Revenue per customer tells you more than total revenue.
Cash runway versus monthly burn rate gives you the clearest picture of survival time.
You can have great metrics but if you’re burning through cash faster than you’re bringing it in, none of the other numbers matter. I track how many months I can operate at current spending levels.
Pair that with monthly recurring revenue growth rate to see if you’re moving toward profitability fast enough.
Unit economics matter more than any single metric. Track CAC payback period alongside retention cohorts. If it takes you 18 months to recover acquisition costs but customers churn at month 12, you’re bleeding money no matter how fast you grow. Focus on the ratio between monthly recurring revenue per customer and what you spend to get them. That balance tells you if you can actually scale profitably.