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Key performance indicators (KPIs) are the core metrics that you and your investors can measure to determine if your business is financially healthy and on track to meet its goals. Tracking KPIs can also give you insight into what’s driving or hindering your business.
Your KPIs should be specific and measurable. However, they’ll depend on your business’s industry, market, business models, and goals. For example, if you run a Software as a service (SaaS), your customer acquisition cost, customer lifetime value, annual recurring revenue, monthly recurring revenue and churn could all be KPIs.
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