February 23, 2024
Growing your startup is an exciting, yet daunting task. On top of all the hard work of building your product, having to bring it to market requires a whole other skill set. Whether you're just starting or a few fundraising rounds in, tracking growth metrics is key for startups to understand how your business is performing against the goals you set. But there are endless growth metrics, so which ones are most important for your business?
In this post, we'll dive into key growth metrics you can find in Google Analytics and how they can help you understand the health of your startup.
Growth metrics help you answer questions like:
From fine-tuning marketing campaigns to iterating on the customer onboarding journey, understanding growth metrics gives you the insights you need to make informed decisions about the present and future of your startup. It's easy to think your marketing isn’t working when there's no visibility into what is happening. Don't ignore the data you get from tools like Google Analytics; there are strategies to help your startup use these metrics to get ahead.
Google Analytics surfaces tonnes of metrics, each with a unique purpose. But to get to the core health of your growth, you can keep it simple and focus on monitoring these three metrics.
1. New Signups
You should look for trends in the daily number of signups to your website or app. Having an eye on this will help you better understand if your marketing and sales strategies are effective and when it’s time to diversify your channels and campaigns.
2. New Visitors
Choose a top-of-funnel metric that best captures the outreach work your team does. Tracking trends at the beginning of your customer journey helps you understand and optimise efforts like email campaigns, search, or paid ads.
3. Conversion rate
The rate users convert from leads to paying customers can inform things from campaign effectiveness to pricing strategies and website design. Optimising this rate while keeping the cost of customer acquisition low is how you build profitability down the road.
Google Analytics marks the following events as conversions automatically:
In most SaaS businesses, there are other user actions included in growth goals that are considered conversion events. Commonly, these are arriving at an order confirmation page, booking a demo, or subscribing to a newsletter. Take a look at your growth goals and think through what website behaviours would be helpful to add to your conversion tracking. Google Analytics 4 gives you the flexibility to set up events as conversions, check out their setup steps here.
Enriching metrics with dimensions
Looking at the metrics we listed above will give you a snapshot of the traffic and impact of your website or app. Combining these metrics with attributes of your data, called dimensions, is where Google Analytics gives your powerful insights into your growth. It enriches metrics like 2,345 users last week (metric) to 1,234 users last week came from Google Paid Search (metrics + dimension).
The sheer number of dimensions in GA can be daunting, so here are the two most important to focus on:
When you’ve mastered these and are ready to dig deeper within Google Analytics, there are many more metrics to explore. Understanding the full scope of your growth data gives you a real sense of how users are interacting with your brand and gives your team more creative ways to improve performance.
Startups achieve growth objectives by effectively utilising metrics. The key is to take a strategic, organised approach. Here are three best practices that startups should consider:
If you can’t measure it, you can’t improve it. By understanding which metrics matter most and how to utilise them effectively, you give your startup the best chance of hitting growth goals. That's where Calliper can help. We take all the guesswork out of data analysis and provide your team with actionable insights that will help your business grow. Let us help unlock your Google Analytics data–join our waitlist here.
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