Measuring MVP Success: Key Metrics to Track and Evaluate PerformanceCade Taylor, Business Analyst @ Verticode
July 6, 2023, 1 min read

When developing a new app, software, or product, it’s important to track and evaluate the success of your Minimum Viable Product (MVP) before investing more resources into the project. To measure the success of your MVP, there are several key metrics you should track and evaluate. These metrics will help you determine whether or not your MVP is worth investing in further.

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Customer Acquisition Cost (CAC)

The Customer Acquisition Cost (CAC) is a metric that measures how much it costs to acquire a new customer. It’s important to track CAC because it can help you determine the effectiveness of your marketing efforts. CAC is calculated by dividing the total cost of acquiring new customers by the total number of customers acquired.

Lifetime Value of a Customer (LTV)

The Lifetime Value of a Customer (LTV) is a metric that measures the total value a customer brings to your business over the course of their lifetime. It’s important to track LTV because it can help you determine the effectiveness of your customer retention efforts. LTV is calculated by multiplying the average revenue per user (ARPU) by the average lifespan of a customer.

Average Revenue Per User (ARPU)

The Average Revenue Per User (ARPU) is a metric that measures the average revenue generated per user. It’s important to track ARPU because it can help you determine the effectiveness of your product or service. ARPU is calculated by dividing the total revenue generated by the total number of users.

Conclusion

Measuring the success of your MVP is essential for determining whether or not it’s worth investing in further. By tracking and evaluating key metrics such as Customer Acquisition Cost (CAC), Lifetime Value of a Customer (LTV), and Average Revenue Per User (ARPU), you can gain valuable insights into the success of your app prototype, app mockup, or software and make informed decisions about the future of your project. Investors will also be interested in these metrics when evaluating your product or service.

If you need help to create an MVP then contact Verticode today and arrange a free meeting with us!

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