Contents

Chapter 1

What's Inside

This chapter covers the core features and capabilities of Business Metrics Handbook.

What's Inside

By Business Model

FolderMetrics Covered
saas/MRR, ARR, Net Revenue Retention, Logo Retention, Quick Ratio, Magic Number, Burn Multiple
ecommerce/AOV, Conversion Rate, Cart Abandonment, Revenue Per Visitor, Return Rate
marketplace/GMV, Take Rate, Liquidity, Buyer/Seller Ratio, Supply Utilization
subscription/Churn Rate, LTV, LTV:CAC Ratio, Payback Period, Expansion Revenue
finance/Gross Margin, Rule of 40, Burn Rate, Runway, Unit Economics
growth/CAC, Activation Rate, Viral Coefficient, Cohort Retention, North Star Metrics

Special Files

  • INDEX.md — Quick-reference index of all metrics with one-line definitions
  • metric-trees.md — How metrics connect to each other (decomposition trees)
  • north-star-guide.md — Choosing and using North Star metrics

How to Use This Handbook

Looking up a specific metric? Check INDEX.md for the one-liner and a pointer to the full entry.

Understanding how metrics relate? Read metric-trees.md to see decomposition trees and dependencies.

Setting targets for your business? Each metric file includes industry benchmarks by stage (seed, Series A, growth, mature).

Debugging a metric that moved? Each file explains what drives the metric up or down, and which related metrics to check.

Chapter 2

Metric Entry Format

Follow this guide to get Business Metrics Handbook up and running in your environment.

Metric Entry Format

Every metric follows this structure:

1. Definition — Precise, unambiguous definition

2. Formula — Mathematical formula with variable definitions

3. Worked Example — Specific numbers showing the calculation

4. Benchmarks — By industry and company stage

5. Common Pitfalls — How people get this metric wrong

6. Related Metrics — What else to look at

Who This Is For

  • Data analysts who need precise metric definitions (not Wikipedia-level)
  • Product managers setting KPIs for their team
  • Founders and operators benchmarking their business
  • Finance teams building investor reporting
Chapter 3
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03_License

Chapter 4
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Metrics Index

Chapter 5
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Average Order Value (AOV) & Conversion Rate

Chapter 6
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Cart Abandonment Rate & Revenue Per Visitor

Chapter 7
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Burn Rate & Runway

Chapter 8
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Gross Margin & Rule of 40

Chapter 9
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Activation Rate & Viral Coefficient

Chapter 10
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Customer Acquisition Cost (CAC)

Chapter 11
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Cohort Retention Analysis

Chapter 12
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Gross Merchandise Value (GMV) & Take Rate

Chapter 13
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Marketplace Liquidity & Supply Utilization

Chapter 14
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Metric Decomposition Trees

Chapter 15
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North Star Metric Guide

Chapter 16
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Monthly Recurring Revenue (MRR)

Chapter 17
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Net Revenue Retention (NRR)

Chapter 18
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SaaS Quick Ratio & Magic Number

Chapter 19
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Churn Rate

Chapter 20
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Customer Lifetime Value (LTV) & LTV:CAC Ratio

Chapter 21
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CAC Payback Period & Expansion Revenue

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