Unit Economics: The key to sustainable growth

March 17, 2024
Founder takes a look at her unit economics

Simplify Unit Economics - GoPractice

In the world of start-ups Unit Economics crucial. They analyse revenue and expenses down to the smallest identifiable unit, such as a subscription for SaaS startups. These metrics provide valuable insights into the financial health and scalability of your business.

 

Key figures

ARR / MRR (Annual Recurring Revenue / Monthly Recurring Revenue): Shows the recurring revenue on an annual or monthly basis.

ARPA (Average Revenue per Account)Average sales per customer: in.

Churn rateMeasures customer churn.

LTV (Life Time Value)Sales of a customer over its entire lifetime.

CAC (Customer Acquisition Cost)Costs for acquiring a new customer.

 

Implementation and optimisation: Understand the customer journey to identify critical touchpoints and strengthen customer relationships.

 

Conclusion: A well-founded analysis and optimisation of unit economics is essential for the sustainable growth and success of your startup. Use these key figures to steer your business strategy and achieve your goals.