🚀 Which metrics actually matter pre-product market fit?

3 tactics, 2 traps and 1 tool on tracking pre-PMF metrics

Hello founders!

Welcome back to ‘Tactical Tips’ by Jerel and Shuo at DECODE, the largest founder community co-hosted across Berkeley and Stanford. Every week, we cover one of our founders’ top questions on how to build, sell and operate 10x better.

Today, we’ll be answering the question, “Which metrics should you track before product market fit (PMF)?” and covering insights around tracking your leading indicator of retention, time-to-value and customer health.

So, here is advice inspired by Liz Christo, Partner at Stage 2 Capital.

And ... we’ve curated a YouTube playlist featuring our best founders, operators and investors. 

🔥 Inside this issue:

✅ 3 tactics on tracking metrics before PMF
✅ 2 traps to avoid 
✅ 1 tool to leverage 

👇Let’s dive in.

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3 tactics on tracking metrics before PMF

🎯 Define and track your leading indicator of retention (LIR)

  • Select one metric that is indicative of a customer deriving value (your LIR). It should be: 

    • Observable and measurable (yes/no per customer)

    • Tied to value (not just usage or signups)

    • Predictive of retention (even if directionally at first)

    • Examples: 

      • For Slack: teams sending 2,000+ messages in the first 30 days

      • For a telemedicine platform: conduct 10 video conferences with patients within 1 month

      • For a workflow product: creating and reusing 3+ workflows in the first 30 days

  • Validate your LIR by comparing the actual retention rates of customers acquired 12–18 months ago, segmented by whether they achieved the LIR or not

  • Don’t wait for perfection; choose a hypothesis, measure it, and refine it

⏱️ Measure Time-to-Value (TTV)

  • Track these attributes:

    • Is the customer in your currently defined ICP?  (Yes/No)

    • Expected and actual date of go live (creates a sense of urgency, especially for enterprise products)

    • How long it takes new customers to hit the target LIR (your TTV)

      • If it takes too long for customers to get value (even if they eventually do), you’re already at risk of churn

  • Aim to shorten TTV before scaling up by improving product clarity, onboarding and customer experience

🩺 Conduct a weekly customer health rollup

  • Review every active customer weekly to confront reality before problems compound:

    • Are they active?

    • How far are they from hitting the target LIR?

    • Are there any open issues, support tickets and/or bugs reported?

    • Assign a clear health status (Healthy, Stuck, At Risk)

  • Keep it simple with a simple spreadsheet; you don’t need a full analytics stack yet

2 traps to avoid

🚨 Optimizing for efficiency metrics too early

  • Efficiency metrics (e.g. CAC, LTV, gross margin, and burn multiple) only matter after nailing value creation and retention

  • Optimizing too early = polishing a funnel that doesn’t work yet

  • Make it work first, then make it efficient

🚨 Tracking everything instead of what actually matters

  • Page views, signups, social mentions going up ≠ proof the business works

  • Stop tracking if a metric doesn’t answer “Are customers getting real, repeatable value from your product?

  • Early-stage metrics should be "high-signal"; directly guiding whether to change onboarding, tweak a feature, or double down on a specific customer segment

1 tool to leverage

📖 Best practice on tracking LIR

Bonus: 1 trend to spark startup ideas

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