Title: Startup Metrics — LearnCoachAssist

Q: What is monthly recurring revenue (MRR)?
A: MRR is predictable subscription revenue normalized to a monthly amount, commonly used by SaaS businesses to track growth.

Q: What is churn?
A: Churn is the rate at which customers or revenue are lost during a period; high churn can erase growth even when acquisition is strong.

Q: What is customer acquisition cost (CAC)?
A: CAC is the average cost of acquiring a new customer, including sales and marketing spend divided by new customers gained.

Q: What is lifetime value (LTV)?
A: LTV estimates the total gross profit a customer will generate over the relationship with the business.

Q: What is payback period?
A: Payback period measures how long it takes to recover the cost of acquiring a customer from that customer's gross profit.

Q: What is activation rate?
A: Activation rate is the percentage of new users who complete a key action that indicates they have experienced initial value.

Q: What is net revenue retention (NRR)?
A: NRR measures revenue retained from existing customers after expansion, contraction, and churn; above 100% means accounts are growing overall.

Q: What is runway?
A: Runway is how long a company can operate before running out of cash at its current burn rate.

Q: What is a vanity metric?
A: A vanity metric looks impressive but does not clearly connect to business health or decision-making.

Q: What is a product-qualified lead (PQL)?
A: A PQL is a user whose product behavior shows strong purchase intent, such as reaching usage limits or inviting teammates.

Q: What does activation metric mean in startup metrics?
A: An activation metric measures whether new users experience the product's first meaningful value.

Q: Why does activation metric matter in startup metrics?
A: It predicts later retention better than simple signup counts.

Q: What is a common mistake with activation metric?
A: Counting account creation as success when users never reach value.

Q: How can you practice activation metric?
A: Apply it to a small realistic example, explain the decision out loud, then check whether the result matches the intended outcome.

Q: What question should you ask when using activation metric?
A: Ask: what problem is this solving, what trade-off does it create, and how will I know it worked?

Q: What is a simple example of activation metric?
A: A simple example is using activation metric in a small project, note, or decision before applying it to a larger real-world situation.

Q: What does cohort retention mean in startup metrics?
A: Cohort retention tracks how groups of users from the same start period behave over time.

Q: Why does cohort retention matter in startup metrics?
A: It reveals whether product changes improve long-term engagement.

Q: What is a common mistake with cohort retention?
A: Mixing all users together and hiding retention decay.

Q: How can you practice cohort retention?
A: Apply it to a small realistic example, explain the decision out loud, then check whether the result matches the intended outcome.

Q: What question should you ask when using cohort retention?
A: Ask: what problem is this solving, what trade-off does it create, and how will I know it worked?

Q: What is a simple example of cohort retention?
A: A simple example is using cohort retention in a small project, note, or decision before applying it to a larger real-world situation.

Q: What does gross revenue retention mean in startup metrics?
A: Gross revenue retention measures retained revenue before expansion revenue.

Q: Why does gross revenue retention matter in startup metrics?
A: It shows how much existing revenue is protected from churn and contraction.

Q: What is a common mistake with gross revenue retention?
A: Looking only at net retention and missing core churn problems.

Q: How can you practice gross revenue retention?
A: Apply it to a small realistic example, explain the decision out loud, then check whether the result matches the intended outcome.

Q: What question should you ask when using gross revenue retention?
A: Ask: what problem is this solving, what trade-off does it create, and how will I know it worked?

Q: What is a simple example of gross revenue retention?
A: A simple example is using gross revenue retention in a small project, note, or decision before applying it to a larger real-world situation.

Q: What does sales cycle mean in startup metrics?
A: Sales cycle is the time from first qualified contact to closed deal.

Q: Why does sales cycle matter in startup metrics?
A: It affects cash flow, forecasting, and go-to-market design.

Q: What is a common mistake with sales cycle?
A: Assuming enterprise sales can behave like self-serve signup.

Q: How can you practice sales cycle?
A: Apply it to a small realistic example, explain the decision out loud, then check whether the result matches the intended outcome.

Q: What question should you ask when using sales cycle?
A: Ask: what problem is this solving, what trade-off does it create, and how will I know it worked?

Q: What is a simple example of sales cycle?
A: A simple example is using sales cycle in a small project, note, or decision before applying it to a larger real-world situation.

Q: What does pipeline coverage mean in startup metrics?
A: Pipeline coverage compares potential deal value to the revenue target.

Q: Why does pipeline coverage matter in startup metrics?
A: It helps forecast whether sales has enough opportunities to hit goals.

Q: What is a common mistake with pipeline coverage?
A: Treating every pipeline deal as equally likely to close.

Q: How can you practice pipeline coverage?
A: Apply it to a small realistic example, explain the decision out loud, then check whether the result matches the intended outcome.

Q: What question should you ask when using pipeline coverage?
A: Ask: what problem is this solving, what trade-off does it create, and how will I know it worked?

Q: What is a simple example of pipeline coverage?
A: A simple example is using pipeline coverage in a small project, note, or decision before applying it to a larger real-world situation.

Q: What does conversion funnel mean in startup metrics?
A: A conversion funnel maps steps from awareness to purchase or activation.

Q: Why does conversion funnel matter in startup metrics?
A: It identifies where prospects drop off.

Q: What is a common mistake with conversion funnel?
A: Optimizing the top of funnel while the product leaks users later.

Q: How can you practice conversion funnel?
A: Apply it to a small realistic example, explain the decision out loud, then check whether the result matches the intended outcome.

Q: What question should you ask when using conversion funnel?
A: Ask: what problem is this solving, what trade-off does it create, and how will I know it worked?

Q: What is a simple example of conversion funnel?
A: A simple example is using conversion funnel in a small project, note, or decision before applying it to a larger real-world situation.

Q: What does unit economics mean in startup metrics?
A: Unit economics compares revenue and cost at the customer or transaction level.

Q: Why does unit economics matter in startup metrics?
A: It shows whether growth can become profitable.

Q: What is a common mistake with unit economics?
A: Scaling acquisition before the unit economics work.

Q: How can you practice unit economics?
A: Apply it to a small realistic example, explain the decision out loud, then check whether the result matches the intended outcome.

Q: What question should you ask when using unit economics?
A: Ask: what problem is this solving, what trade-off does it create, and how will I know it worked?

Q: What is a simple example of unit economics?
A: A simple example is using unit economics in a small project, note, or decision before applying it to a larger real-world situation.

Q: What does pricing tier mean in startup metrics?
A: A pricing tier packages value for a segment at a specific price point.

Q: Why does pricing tier matter in startup metrics?
A: It lets different customers buy according to needs and willingness to pay.

Q: What is a common mistake with pricing tier?
A: Creating too many tiers that confuse buyers.

Q: How can you practice pricing tier?
A: Apply it to a small realistic example, explain the decision out loud, then check whether the result matches the intended outcome.

Q: What question should you ask when using pricing tier?
A: Ask: what problem is this solving, what trade-off does it create, and how will I know it worked?

Q: What is a simple example of pricing tier?
A: A simple example is using pricing tier in a small project, note, or decision before applying it to a larger real-world situation.

Q: What does expansion revenue mean in startup metrics?
A: Expansion revenue comes from existing customers upgrading, adding seats, or buying add-ons.

Q: Why does expansion revenue matter in startup metrics?
A: It can make growth more efficient than only acquiring new customers.

Q: What is a common mistake with expansion revenue?
A: Ignoring customer success after the initial sale.

Q: How can you practice expansion revenue?
A: Apply it to a small realistic example, explain the decision out loud, then check whether the result matches the intended outcome.

Q: What question should you ask when using expansion revenue?
A: Ask: what problem is this solving, what trade-off does it create, and how will I know it worked?

Q: What is a simple example of expansion revenue?
A: A simple example is using expansion revenue in a small project, note, or decision before applying it to a larger real-world situation.

Q: What does cash conversion mean in startup metrics?
A: Cash conversion is how quickly bookings or revenue become actual cash.

Q: Why does cash conversion matter in startup metrics?
A: It matters because profit on paper does not pay bills.

Q: What is a common mistake with cash conversion?
A: Ignoring payment terms and collection delays.

Q: How can you practice cash conversion?
A: Apply it to a small realistic example, explain the decision out loud, then check whether the result matches the intended outcome.

Q: What question should you ask when using cash conversion?
A: Ask: what problem is this solving, what trade-off does it create, and how will I know it worked?

Q: What is a simple example of cash conversion?
A: A simple example is using cash conversion in a small project, note, or decision before applying it to a larger real-world situation.

Q: What does break-even point mean in startup metrics?
A: Break-even is when revenue covers costs.

Q: Why does break-even point matter in startup metrics?
A: It helps founders understand sustainability and funding needs.

Q: What is a common mistake with break-even point?
A: Confusing revenue growth with profitability.

Q: How can you practice break-even point?
A: Apply it to a small realistic example, explain the decision out loud, then check whether the result matches the intended outcome.

Q: What question should you ask when using break-even point?
A: Ask: what problem is this solving, what trade-off does it create, and how will I know it worked?

Q: What is a simple example of break-even point?
A: A simple example is using break-even point in a small project, note, or decision before applying it to a larger real-world situation.

Q: What does market size mean in startup metrics?
A: Market size estimates the potential demand for a product.

Q: Why does market size matter in startup metrics?
A: It helps decide whether an opportunity can support the desired business.

Q: What is a common mistake with market size?
A: Using a huge market number without a realistic reachable segment.

Q: How can you practice market size?
A: Apply it to a small realistic example, explain the decision out loud, then check whether the result matches the intended outcome.

Q: What question should you ask when using market size?
A: Ask: what problem is this solving, what trade-off does it create, and how will I know it worked?

Q: What is a simple example of market size?
A: A simple example is using market size in a small project, note, or decision before applying it to a larger real-world situation.

Q: What does north-star metric mean in startup metrics?
A: A north-star metric captures the core customer value that drives sustainable growth.

Q: Why does north-star metric matter in startup metrics?
A: It aligns teams around impact rather than activity.

Q: What is a common mistake with north-star metric?
A: Choosing a metric that can grow while users receive little value.

Q: How can you practice north-star metric?
A: Apply it to a small realistic example, explain the decision out loud, then check whether the result matches the intended outcome.

Q: What question should you ask when using north-star metric?
A: Ask: what problem is this solving, what trade-off does it create, and how will I know it worked?

Q: What is a simple example of north-star metric?
A: A simple example is using north-star metric in a small project, note, or decision before applying it to a larger real-world situation.

Q: What does leading indicator mean in startup metrics?
A: A leading indicator predicts future results before lagging metrics arrive.

Q: Why does leading indicator matter in startup metrics?
A: It helps teams act earlier.

Q: What is a common mistake with leading indicator?
A: Waiting for revenue or churn data when earlier signals are available.

Q: How can you practice leading indicator?
A: Apply it to a small realistic example, explain the decision out loud, then check whether the result matches the intended outcome.

Q: What question should you ask when using leading indicator?
A: Ask: what problem is this solving, what trade-off does it create, and how will I know it worked?

Q: What is a simple example of leading indicator?
A: A simple example is using leading indicator in a small project, note, or decision before applying it to a larger real-world situation.

Q: What does customer concentration mean in startup metrics?
A: Customer concentration measures how dependent revenue is on a small number of customers.

Q: Why does customer concentration matter in startup metrics?
A: High concentration increases risk if one customer leaves.

Q: What is a common mistake with customer concentration?
A: Celebrating big accounts without noticing dependency risk.

Q: How can you practice customer concentration?
A: Apply it to a small realistic example, explain the decision out loud, then check whether the result matches the intended outcome.

Q: What question should you ask when using customer concentration?
A: Ask: what problem is this solving, what trade-off does it create, and how will I know it worked?

Q: What is a simple example of customer concentration?
A: A simple example is using customer concentration in a small project, note, or decision before applying it to a larger real-world situation.