Every founder is drowning in numbers. Page views, sign-ups, followers, downloads. Most of them feel good and tell you very little. The seven metrics below are different: together they show whether your business is healthy and exactly where to focus next.
1. Monthly recurring revenue (MRR)
MRR is the heartbeat of a subscription business. Track new, expansion, contraction and churned MRR separately so you can see what is really driving growth.
2. Net revenue retention
Net revenue retention shows how much revenue you keep and grow from existing customers. Above 100% means your customers are worth more every month, even before you add new ones.
“If you can only watch one number, watch net revenue retention. It tells you whether customers love what you built.”
3. Customer acquisition cost
Add up everything you spend on sales and marketing and divide it by the number of new customers. Then compare it with the next metric.
4. Customer lifetime value
How much revenue does a typical customer bring in before they leave? A healthy business earns at least three times its acquisition cost.
5. Activation rate
Define the moment a new user first gets value, then measure how many reach it. Small improvements here compound across the whole funnel.
Quick tips
- Pick one activation event and stick with it.
- Review the metric weekly with the whole team.
- Run one experiment at a time so you know what worked.
6. Churn rate
Measure both customer churn and revenue churn. Look at churn by cohort to see whether recent changes are helping.
7. Payback period
How many months does it take to earn back what you spent to win a customer? Shorter payback means you can grow faster with less cash.
Nova tracks all seven metrics out of the box. Connect your billing tool and you'll have a founder dashboard in minutes.