It's the most common question I get asked when I meet people in the startup community.
But is this a relevant question to ask?
Is this the right metric we should be tracking track?
Does this metric give an accurate representation of Betatron's progress?
Personally, I don't think so...
A better question might be, "how many promising startups have applied?".
It's imperative to focus on QUALITY over QUANTITY when you're thinking about tracking your startup's metrics.
How to find the right metric to track?
I'm a firm believer in giving everyone in your startup one specific metric to focus on.
If you assign a team member the wrong metric, it can dramatically affect your chance of success, often, without you even realising it.
Let's take Betatron as an example...
If my primary metric was the total number of applications we receive, then I would naturally have to focus on increasing the quantity regardless of the quality.
For example, if social media ads generate more applications, BUT higher quality applications come through networking events or press articles, then social media ads is what I'd have to focus on.
Break down your lead generation funnel to see which stage is the most important
Here are the different stages of Betatron's funnel.
1. Application is received
2. Interview is conducted
3. Due diligence session
4. Startup receives an offer
If a startup get's selected for an interview, it means that after analysing their application, we think they have potential.
A startup moves to the due diligence phase ONLY if they pass the interview. However, they can fail the interview for a number of different reasons:
- Maybe their cap table isn't optimally structured for investment.
- Maybe their tech development roadmap is too long for Betatron to add enough significant value during our program
- Maybe their target market is too small and scaling will be challenging.
There could be a variety of different reasons which are hard to account for, but it doesn't necessarily mean the startup isn't of high-quality or doesn't have potential.
Therefore, tracking the number of startups we move to the due diligence round might not be the best metric, as it's too far down the sales funnel and harder to control.
However, tracking the number of startups we interview, could be the optimal KPI in our funnel, as it's the best combination of quality AND quantity.
Are you tracking the right metrics?
I see this in digital marketing all the time.
For example, if you have an eCommerce store, tracking the number of unique visitors is useful...
But, focusing on the number of visitors who browse your site for more than 1-minute would be even better.
Perhaps, you're focusing on building your email database...
Your total number of email subscribers is a nice VANITY metric.
But it doesn't mean anything unless people actually open and read your email. Therefore, you should focus on increasing the number of unique email opens and your email open rate %.
If you're unsure of which metrics you should be tracking, feel free to reach out and I'll see if I can help.
If you weren't already aware, we've extended the application deadline for cohort 3 until tomorrow (Thursday 15th March).
Also, the new scheduled start date for the program is April 23rd.
How to apply?
Still haven't applied? Complete the application form here: betatron.co/apply
If you have any questions, I'm here to help :)