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Key Performance Indicators – KPIs – are the mirror used to tell whether your tech startup is on track or not. They help ease the process of decision making by dictating areas to be given focus and emphasis depending on the startup’s set goals.
However, there are quite a number of KPIs a startup can keep track of making it impossible to track them all. That’s why identifying the most crucial is the recommended option.
It should also be noted that KPIs that must be kept track of vary from startup to startup depending on the set goals and industry. Though some remain constant for tech startups as they’re looked at as a way of laying the business foundation.
So, in terms of KPI’s for Uganda’s tech startups, the following should be watched as recommend by TMS Ruge, a co-founder at Hive Colab and Useremit.
1. Customer Acquisition
The number one KPI that Ruge advises any tech startup to keep track of is the user or “customer adoption in micro measurements.”
“Our market is so small, be glad you can measure your customers one by one on a daily basis,” Ruge added.
This should be able to help you understand their behavior and patterns – which is crucial when trying to understand whether you’re attracting the right customers or not.
2. Customer feedback
Ideally, you’re developing a product for your end users. It wouldn’t, therefore, make sense at all if what you highly rate is worthless to them.
“Keep track of the number of satisfied customers vs those unsatisfied. Successful attention to this detail will help in retaining customers you are tracking in #1,” Ruge says.
If a customer is satisfied with the product or service, engage them to find out what exactly they like that’s making them come back.
Still, if they don’t like your product, engage them and find out what would make them use it.
3. Revenue growth
With little or no alternative sources of funding for your Ugandan startup, it is only logical that the sooner you start generating revenue, the better. Yet, Ruge says the revenue metric is not as easy as one may think.
“This is a metric that is quite tricky in our tiny market, but it can be done. If Fenix International can figure out a way to generate $20 million in sales from village people wanting clean energy, you can figure out how to monetize an urban customer base,” Ruge says.
He also adds that “If you can’t do this then throw out your business model and start over”. Because, as he concluded, “if you can’t do this, you won’t get funded.”
This stands for Monthly Active Users. It can be measured interchangeably with revenue growth as Ruge points out below;
“If your business model is foregoing revenues in exchange for the growth of users, then this becomes an extremely useful metric to track”.
Lastly, your startup should be able to measure profitability if it is able to figure out the top four.