{"id":37682,"date":"2023-10-20T14:51:41","date_gmt":"2023-10-20T14:51:41","guid":{"rendered":"http:\/\/startupsmart.test\/2023\/10\/20\/how-to-use-metrics-to-decide-when-your-startup-should-spend-raise-or-pivot-startupsmart\/"},"modified":"2023-10-20T14:51:41","modified_gmt":"2023-10-20T14:51:41","slug":"how-to-use-metrics-to-decide-when-your-startup-should-spend-raise-or-pivot-startupsmart","status":"publish","type":"post","link":"https:\/\/www.startupsmart.com.au\/uncategorized\/how-to-use-metrics-to-decide-when-your-startup-should-spend-raise-or-pivot-startupsmart\/","title":{"rendered":"How to use metrics to decide when your startup should spend, raise or pivot – StartupSmart"},"content":{"rendered":"
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Like most tech startups, we at BugHerd make sure to continuously record a number of different metrics.<\/p>\n

Making decisions off the back of hard data is always preferable, but in the daily chaos of early stage startups founders can often neglect to connect the dots. Here\u2019s how to use your data to make more informed choices, in three decisions all founders will someday face.<\/p>\n

Where should I spend my marketing budget?<\/h3>\n

To get the most out of your advertising dollars, not only do you want to drive visitors to your site as cheaply as possible but you also want them to spend money when they get there.<\/p>\n

Though the required data will rarely be in the same place for each channel, find or derive your cost per click (CPC) for each. The next step is to work out what each of those clicks are worth to you.<\/p>\n

Different marketing channels will convert to paid at different rates and they’ll spend differently too. By multiplying a channel’s conversion rate by this average value you’ll find its value per click.<\/p>\n

Dividing value per click by your CPC will give you your return on investment (ROI) for that particular campaign and channel. As you track your ROIs over time, you’ll be able to identify where your money performs best.<\/p>\n

Watch out for:<\/p>\n