Fintech is a dynamic space, but with that dynamism comes the need for laser-sharp measurement. To optimize the product, target the right audience, and achieve sustainable growth, tracking key metrics is crucial. As we work closely with our portfolio founders at Trihill Capital, here is a glimpse of a few metrics we typically track with them, and why: 1️⃣ User Activation 🔴 Metric #1: Conversion Rate (Installed-to-Registered-to-Active) Tracking conversion rates (installed-to-registered-to-active) is crucial for fintech companies, it acts as a diagnostic tool, pinpointing leaks within the acquisition funnel. Providing insights on where potential customers drop off, fixing those issues, and ultimately converting more users into active customers. 🔴 Metric #2: Average Time to First Transaction While conversion rates track the effectiveness of customer acquisition, the average time to the first transaction sheds light on potential friction points within the user journey, particularly during onboarding. By tracking these metrics in tandem, a comprehensive understanding of both acquisition and activation effectiveness is gained. This data-driven approach allows for targeted optimization, enabling founders to build a robust user journey that fosters user engagement, retention, and ultimately, sustainable growth for fintech businesses. 2️⃣ Customer Retention 🔴 Metric: (Well defined) Retention rate While user retention is a widely tracked metric, a precise definition tailored to each business is essential. The meaning of "active user" can vary significantly across companies and industries. For instance, "active" might signify simply opening the app for some, while for others it could indicate actively transacting on the platform. This distinction is crucial, and establishing a clear definition fosters clearer communication and data interpretation. A data-centric approach is paramount for fintech startups. By meticulously tracking these core metrics and taking a step back to understand their deeper implications, invaluable insights are generated, enabling informed decision-making, operational optimization, and ultimately, the achievement of sustainable growth. Want to learn more? Join our upcoming conference on the state of fintech on Tuesday, April 2nd, 2024. Network with leading Southeast Asian fintech VCs Trihill Capital and 1982 Ventures RSVP here: https://lnkd.in/gPm5W3Ki
Matthew Garrett
8mo
Insightful Dzaky!
Investments at Telkomsel Ventures | Venture Capital
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