5 Marketing KPIs Every Startup Should Pay Attention To

You know the feeling - you've just launched your startup, and you're eager to get the word out about your brilliant new product or service. But, let’s be real, there’s a lot of groundwork to be laid before you ever get your first sale. Building your product, developing your team, determining product market fit, and so much more. 

If you’re reading this blog, my guess is you’ve already decided you need marketing but have no idea what you should be tracking to gauge success at this stage of your company. 

If you Google “marketing metrics to track,” you’ll see a lot of advice about tracking revenue and conversions. But those tips are for companies that already have a product and have found some level of product-market fit. If you’re not quite there yet, this blog is for you. 

So, without further ado, let’s dive into the key marketing KPIs you should track as an early stage founder. 

KPIs for Early-Stage Startups: What’s the Difference? 

Before we go over  the KPIs you should track, let’s first cover why your metrics should look different than companies that are a little further along. As a seed stage startup, the harsh reality is that no one knows who you are, and you probably don’t even have a product ready to sell yet. 

While a lot of people would think this means you might not be ready to invest in marketing yet, it actually means you have an amazing opportunity to focus on building awareness around your brand. So many companies only pay attention to leads and revenue, neglecting the awareness stage. But right now you have a great opportunity to start growing an audience while you’re in product development. 

Then, when your product is ready, you’ll have a primed audience who’s already prepared to buy, instead of having to start back at the beginning. 

The Top 5 Marketing KPIs Founders Should be Tracking

1. Focus On Awareness Over Conversion

At this nascent stage of your journey, you should focus on casting a wide net and capturing the attention of your target audience, while also validating you your target audience even is. 

You may realize that while you started your company with a certain audience in mind, your product actually appeals to an entirely different group of people. 

At this stage, instead of fixating on conversion rates, you’ll want to direct your efforts toward driving traffic to your website, growing your social media following, and expanding your email subscriber list. These metrics serve as indicators of your ability to raise awareness and generate interest in your offering. 

This also serves as a test ground for you to start to understand who is interested in what you’re offering as you get to know your audiences better. One of the most valuable assets you can have is an aware list of your target audience. If you can build this list over time in your various networks, you’ll have a primed group of people to sell to when you are ready, eliminating all of the legwork you’d be having to catch up on if you waited until your product was ready. 

Awareness Metrics to Track:

• Website Traffic: Monitor the number of visitors to your website to gauge interest and engagement.
• Social Media Followers: Track the growth of your social media following across platforms to measure brand awareness.
• Email Subscriber Growth: Keep tabs on the number of new subscribers to your email list to assess audience interest and engagement.

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2. Track Engagement Over Revenue

While making sales is important, revenue generation takes a backseat to engagement at this stage. Metrics like time on site, page views, and return visitors signify that you're delivering value. High engagement rates suggest you've achieved product-market fit and built a solid foundation for future growth.

Metrics to Track:

• Time Spent on Site: Measure the average duration visitors spend on your website to gauge engagement levels.
• Pages per Session: Track the number of pages viewed per visit to assess the depth of user interaction.
• Return Visitors: Monitor the frequency of return visits to determine user loyalty and satisfaction.

3. Collect Qualitative Feedback

As an early-stage startup, you should never rely solely on quantitative metrics like traffic and conversion rates. While these numbers are important, they won’t give you a complete picture of how your product resonates with users. 

Collecting qualitative feedback will give you the context you need to make informed strategic decisions. Here are a few ways you can capture qualitative feedback from your audience to help inform your go-to-market and product strategies: 

User Testing

Sit down with a group of target users and have them interact with your product as you observe their experience. Take note of areas where they struggle, features they find most useful, and suggestions for improvement. Their feedback will uncover pain points you may have overlooked.

Customer Surveys

Send out short surveys to gain input from a larger sample of your audience. Ask open-ended questions about their likes, dislikes, and recommendations for enhancing your offering. Look for trends in the responses to determine priorities.

Online Reviews

Pay close attention to reviews on platforms like Product Hunt, Reddit, and Quora. Look past the ratings and read the actual comments, which often contain thoughtful feedback on your product's key strengths and weaknesses according to real users.

While revenue and traffic metrics provide a snapshot of your startup's health, qualitative feedback offers an in-depth diagnosis. By listening to your customers and incorporating their input into your product roadmap, you'll gain invaluable insights that help refine your offering and build something people genuinely want and need. Focus on iteration based on user feedback, and let your audience guide you to product-market fit.

4. Prioritize Rapid Iteration Over Optimization

Don’t get bogged down trying to achieve perfection at this stage of the game. Focus on releasing updates and new features regularly based on the feedback you receive. Stay flexible and willing to adapt as you gain a clearer understanding of your users’ needs. With each iteration, you’ll move closer to finding that sweet spot of product-market fit.

Focus on experimentation and adaptation rather than perfection. Test different marketing channels and product features, refine your messaging, and make changes based on user feedback. An iterative approach positions you to respond rapidly to market changes and evolve your offering accordingly.

Test and Learn

As an early-stage startup, your priorities should revolve around experimentation and adaptation rather than achieving perfection. Focus on testing different marketing channels, refining your messaging, and making ongoing improvements to your product based on user feedback. By embracing a test-and-learn philosophy, you'll gain valuable insights into what resonates with your target audience and be able to pivot quickly in response to changes in the market.

Adapt to Feedback

Your product at this stage is a work in progress, so remain open to feedback and willing to make adjustments. Conduct user testing, monitor reviews, and distribute surveys to gain qualitative insights into your customers' experiences. Then, incorporate that feedback into enhancements and new features to better suit their needs. Adaptability is key; opt for iteration over optimization.

5. Total Capital Raised: A Key Metric for Early Stage Startups

As an early-stage founder, raising capital is a pivotal milestone that validates your venture in the eyes of investors. The amount of funding you secure serves as an important barometer of market confidence in your business.

Demonstrating Traction

When pitching to investors, their primary concern revolves around your ability to achieve sustainable growth. Raising a sizable round of funding signals that you’ve gained meaningful traction and captured the interest of your target audience. This traction gives investors confidence in the viability and scalability of your business model.

Fueling Growth

The capital you raise also provides the fuel required to accelerate your growth. You can channel funds into key areas like product development, customer acquisition, and expanding your team. With additional resources at your disposal, you’ll be able to execute on initiatives that were previously out of reach. The end result is a startup that’s poised for rapid growth and success.

Attracting Top Talent

Raising capital boosts the credibility and appeal of your startup in the eyes of top talent. The injection of funds reassures prospective employees about the stability and ambition of your company. As a result, you’ll find it easier to attract and recruit high-caliber individuals who can drive substantial value.

Gaining Leverage

Finally, raising capital strengthens your leverage and bargaining position. With funding in the bank, you’re able to negotiate more aggressively, take bigger risks, and make strategic investments that wouldn’t otherwise be possible. The additional leverage also allows you to demand more favorable terms from partners and vendors. Overall, raising capital has a multiplier effect, propelling your startup forward in a number of meaningful ways.

For early-stage founders, capital raised emerges as a key indicator of progress and potential. While revenue and profit are the ultimate measures of success, funding secured serves as a valuable metric in these formative stages. By raising substantial capital, you’ll gain the means to accelerate growth, attract top talent, and substantially increase your leverage and influence.

Conclusion

Though the path ahead is filled with unknowns, take comfort in knowing that you're not alone on this journey. 

By focusing on the metrics that matter most in these early stages, embracing adaptability, and listening to your customers every step of the way, you'll gain the traction needed to turn your scrappy startup into a thriving business. 

The road to success is rarely linear, but with a keen understanding of your KPIs and priorities, you’ll be well on your way to establishing a solid foundation for growth. Keep hustling, keep learning, and never lose sight of the vision that fuels your passion. Your breakthrough is closer than you think!

And if you’re looking for a marketing partner you can trust to help you navigate the early days with confidence and clarity, let’s connect. Our team at Clearstart is laser-focused on helping startups grow, and we wholeheartedly understand your pain points and business needs.