Enterprise software startups are capitalizing on real-time data to continually improve revenue, costs, cash flow, marketing and sales as their businesses grow. The majority of software startup CEOs designed their businesses to provide real-time data that's immediately actionable. In addition, they've taken the time to design their business structure and systems to deliver the real-time data they need to scale. 

These 20 metrics shared in this article are the most popular with 15 enterprise software startups founders, CEOs and startup teams VentureBeat recently interviewed. A common attribute all of them share is that real-time data capture, analysis and action is hard-wired into the DNA of their businesses from the beginning. Startups use various analytics applications and platforms to get the real-time data they need, including Adobe Analytics, Clik Sense, Google Analytics, Looker, Microsoft Power BI, R Studio, Tableau Desktop, Zoho Analytics and others.  

Data-driven startups have a head start on growth 

CEOs and founders say staying data-driven is just as challenging as keeping their prototypes, platforms and new apps on schedule. Today, most of the startups interviewed have real-time data capture available from their finance, accounting, devops, sales and marketing systems. However, recruiting team members with advanced analytics expertise are challenging to get the most out of their real-time data. Founders remark that the effort is worth it because real-time data brings greater visibility, control and accountability across their businesses. 

A startup's founder concentrating on cloud-based digital asset management software says real-time data made the difference in signing one of their first larger prospects. Here's her advice to startup CEOs on where to get started:

        The following are the top 20 most popular metrics with startup CEOs, especially those in enterprise software:

        Most popular finance and cash flow metrics  

            The Capital Efficacy Ratio says how efficiently a startup uses cash; the lower the metric, the better. Source: 2021 SaaS Survey Results, KeyBanc Capital Markets, 12th annual edition.  

                      Most popular revenue and selling metrics 

                      Annual recurring revenue (ARR): ARR is defined as the amount of revenue generated every year over the life of contracts and subscriptions. It's a useful metric for tracking the momentum a startup is generating with new sales, upsells and renewals. ARR will fluctuate from one year to the next based on three factors. These include incremental, new ARR, churned ARR, customers who canceled their contracts, expansion ARR, or customers who added new services. Taking all three into account defines the Net ARR for a software company.

                      Tracking ARR bookings by type provides an accurate assessment of the true state of a startup from a revenue standpoint. Knowing the net effect of expansion and churned ARR is where real-time data pays off. Source: SaaS Metrics 2.0 – A Guide to Measuring and Improving what Matters
                            The longer the contract length, the more likely churn rates will drop. Startups bundling in services and offering multi-year pricing discounts will reduce churn from the first subscription. Source: David Skok, 2021 SaaS Survey Results – Part 1.
                              On average, sales reps averaged a median of $561 thousand  in yearly ARR during 2020. Source: 2021 SaaS Survey Results, KeyBanc Capital Markets, 12th annual edition. 

                              Most popular marketing metrics 

                                          Navigating the roadblocks to real-time data

                                          When startups struggle to scale their real-time data, they regularly run into growth roadblocks faster than those adept at turning data into results. The most severe roadblocks come from cash flow, revenue generation and devops problems that take longer to solve because the data behind them aren't as accessible. 

                                          Starting with a small baseline of cash flow and revenue generation metrics is the best place to start, based on advice from startup founders and CEOs. From there, it's best to branch out with a minimal set of metrics for devops, sales and marketing. Real-time data provides startups with the insights they need to stay focused on customer satisfaction while continually improving financial, profit and product quality performance.