Every company tracks certain success metrics. This is a generally accepted criterion for the health of a business. But speaking of markets, these measures are often inaccurately defined or confused in interpretation. Of course, the benchmarks are also different as the markets differ significantly in product categories and customer bases. However, the following list should serve as a primer on the key indicators that the creators of the marketplace need to know to tune their performance and evaluate their future potential.
The following are the 13 metrics for marketplace companies:
- Match Rate
- Market Depth
- Inventory Turnover
- Concentration or Fragmentation of supply and demand
- Take rate
- Unit economics
- Prevalence of multi-tenanting
- Switching or multi-homing costs
- User retention cohorts
- Core action reaction cohorts
- Dollar Retention and paid user retention cohorts
- Retention by location/geography
- Power user curves
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