What’s the best way to reactivate your churned customers?

Jason Fried (Co-Founder & CEO at Basecamp)
Marketing Without Marketing: Why 37Signals Favors Customer Retention | Inc.com

The way I see it, I can spend a lot of time and money trying to persuade a bunch of newcomers to try Basecamp. Or I can spend a lot less effort helping current customers get more out of something they’ve already purchased and enjoy using.

What’s the best way to prioritize?

Gary Swart (General Partner at Polaris Partners)
Don’t make this mistake with metrics | A Founder’s Notebook

Figure out the metric that matters most for your company and understand that the more you measure, the less prioritized you’ll be. Don’t fall into the trap of trying to measure everything. What I’ve learned is that in the early days, what matters most is having customers who love and use your product. Figure out the one or two best measures to determine this.

What’s the best way to measure your company?

Fred Wilson (Co-Founder and Partner at Union Square Ventures)
Valuation As A Scorecard – AVC

Don’t let yourself get sucked into a world where a number is your measure of self worth. Because you don’t control that number. The market does. And some days the market is your friend and other days it is most decidedly not your friend. Measure yourself on whether your employees are happy. Measure yourself on whether your customers are happy. Measure yourself on how much free cash flow your business is generating. Measure yourself on how your br… (read more)

What’s the best way to measure your company?

Fred Wilson (Co-Founder and Partner at Union Square Ventures)
Profits vs Growth – AVC

Your year over year growth rate plus your pre-tax operating margins need to be at least forty percent. Meaning you can grow at 100% per year and have operating margins of -60%. Or you can have flat growth and have 40% operating margins. Or you can grow at 20% per year and have 20% operating margins. There is no magic to the forty percent target, but I do like establishing some relationship between acceptable levels of profitability (or losses) an… (read more)

What’s the best way to measure your company?

Paul Graham (Co-Founder & Partner at Y Combinator)
Do Things that Don’t Scale

If there’s one number every founder should always know, it’s the company’s growth rate. That’s the measure of a startup. If you don’t know that number, you don’t even know if you’re doing well or badly. The best thing to measure the growth rate of is revenue. The next best, for startups that aren’t charging initially, is active users.

What’s the best way to measure your company?

Eric Ries (Author, The Lean Startup)
The Lean Startup: How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses

If you are building the wrong thing, optimizing the product or its marketing will not yield significant results. A startup has to measure progress against a high bar: evidence that a sustainable business can be built around its products or services. That’s a standard that can be assessed only if a startup has made clear, tangible predictions ahead of time. In the absence of those predictions, product and strategy decisions are far more difficult … (read more)

What’s the best way to measure your company?

Eric Ries (Author, The Lean Startup)
The Lean Startup: How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses

…three A’s of metrics: actionable, accessible, and auditable. Actionable metrics …When cause and effect is clearly understood, people are better able to learn from their actions. [Accessible]…make the reports as simple as possible so that everyone understands them.

What’s the best way to measure your company?

Seth Godin (Founder at Yoyodyne Entertainment)
Seth’s Blog: On average, averages are stupid

On average, averages are stupid. “Across our 100 locations, sales on average are up 3% last month.” This tells you exactly nothing. It turns out that ten of the outlets each saw their sales double, while most of the other ones are stagnating or even decreasing in sales. That’s the insight. Averages almost always hide insights instead of exposing them. If the problem is interesting enough to talk about, it’s interesting enough to show the true gro… (read more)

What’s the best way to measure your company?

Paul Graham (Co-Founder & Partner at Y Combinator)
Startup = Growth

The growth of a successful startup usually has three phases: (1)…an initial period of slow or no growth; (2) As the startup figures out how to make something lots of people want and how to reach those people, there’s a period of rapid growth; (3) Eventually a successful startup will grow into a big company. Growth will slow…The phase whose growth defines the startup is the second one, the ascent. Its length and slope determine how big the com… (read more)