Every business needs to know these 5 key performance indicators (KPIs) for faster growth. We’ll cover the most important metrics like customer acquisition cost and customer lifetime, as well as less talked about metrics such as compound annual growth rate. You’ll learn how to calculate these KPIs and how they help measure your business’s performance. Whether you’re just starting a business or looking for expedited growth, understanding these KPIs can give you the insights you need to make smarter decisions and scale faster.

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(00:29) KPI #1 - Customer Acquisition Cost (CAC)

(02:38) KPI #2 - Gross Profit

(04:14) KPI #3 - Lifetime Gross Profit

(06:08) KPI #4 - CAC vs LTV

(09:38) KPI #5 - Compound Annual Growth Rate

Frequently Asked Questions:

What are KPIs, and why are they important for business growth?

Key Performance Indicators (KPIs) are metrics that help you measure how well your business is doing. By focusing on the right KPIs, like customer acquisition cost or lifetime profit, you can track progress and adjust your strategies for faster growth.

What is Customer Acquisition Cost (CAC) and why should I care?

Customer Acquisition Cost (CAC) tells you how much it costs to get a new customer. Keeping your CAC low is important because it means you’re getting more value out of your marketing and sales efforts, helping your business grow faster.

What’s the difference between leading and lagging KPIs?

Leading KPIs predict future performance and can help you make proactive decisions, like marketing campaign results. Lagging KPIs show past performance, such as total sales. You need both to fully understand your business’s performance.

Can small businesses use the same KPIs as large companies?

Small businesses can use the same KPIs, but they might prioritise different ones depending on their goals. For example, a small business might focus more on customer retention, while a larger business might track overall market share.

How often should I track my KPIs?

It depends on the KPI. Some, like daily website traffic or sales, should be checked regularly. Others, like customer lifetime value, might be tracked quarterly. The key is consistency so you can spot trends and make smart business decisions.

Can focusing on too many KPIs slow down growth?

Yes! If you try to track too many KPIs, it can be overwhelming and distract you from the most important ones. Stick to the KPIs that directly impact your goals and growth strategy for your business.