What is The One Metric that Matters — and why do you need it?
The ways you can gather data nowadays are never-ending. There are so many metrics you could be tracking for your startup, that often it’s easy to lose sight of what is important and what you could spend less time on.
In the early stages of any startup, it may feel as though the more metrics you track, the better. However, this approach is a recipe for loss of focus. As metrics ebb and flow, you’ll be stuck wondering what you should be following and which paths to take.
To combat this, Alistair Croll developed the concept of the ‘One Metric That Matters’ (OMTM). This is exactly as it reads, one metric which yourself and/or your team should be focusing on daily.
The OMTM is determined by the one metric that you feel will be the most vital for growth in the coming months. The idea is that the day-to-day tasks in marketing should be driven by growing this number, which in turn will drive your startup towards growth.
It’s important to establish, that the OMTM is not the same for every startup. However, Croll insists that the larger the company, the more specific the number. So, if you are a startup with one founder, you can be broader with the OMTM.
The OMTM for Startups
With the knowledge that those who follow and read my content tend to be startup founders and entrepreneurs, let’s look at the metrics you should consider to be your OMTM. As a startup, traction is where you want to be focusing, so you should be considering the following:
- The conversion rate of website views to checkout
- Customer retention over X period
- Customer Acquisition Ratio
The important thing to consider when determining your OMTM, is that the metric you determine is only for a set period of time, usually with a maximum of 4 months. As your business grows, you can reset and reevaluate what that OMTM should be to focus on your new goal.
There is a difference between the OMTM, which your marketing should focus on and revolve around, versus the metrics that your whole company drives towards. The idea with the OMTM is that everyone is focused on that period of time, for the growth of one particular number, with no distractions.
Do you need help determining the OMTM? Is your startup losing focus on what you should be doing and where you should be heading?
I have just launched Kick-Off, a 6-week programme for founders and entrepreneurs to learn the necessary processes and strategies to help grow and launch successful products.