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Lean AI by Lomit Patel

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Chapter 6. Key Metrics for Startup Growth

Artificial intelligence and machine learning aside, it’s important to know what growth metrics are critical to your startup to give clear success goals to your “intelligent machine” to target. The growth team in startups are responsible for acquisition, retention and monetization of new customers as they evolve down the marketing funnel. Therefore, it’s important to have specific input metrics to enable you to measure success and benchmark the trend of whether you’re getting better or worse over time in meeting and exceeding these Key Performance Indicators (KPI). The complex interplay between KPI metrics grows as your marketing investment increases, making AI a perfect way to automate your campaigns as your growth accelerates.

In this chapter, we’ll look at are five key metrics every startup growth team should track for user acquisition and leverage an “intelligent machine” to help optimize the different key levers like bids, budgets, channels, creative and A/B testing across the entire marketing funnel to better meet and exceed goals. The added benefit of using these key metrics is that they are simple to understand for everyone in the company as well as the investors in the business who can benchmark these against other similar startups.

1. Customer Acquisition Cost (CAC)

The Customer Acquisition Cost (CAC) measures the cost of acquiring a new customer. This is one of the most important metrics because it tells you how much it costs ...

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