There are two types of metrics in this world; actionable and vanity metrics. While it goes without saying businesses should be focusing on their actionable metrics, we are seeing more and more people get caught up chasing vanity metrics.
We are here to tell you that vanity metrics aren’t the be all and end all, but actionable metrics very well are.
Like their name says, vanity metrics are for the vain at heart. They are the pretty numbers you see on someone’s Instagram. While they give your business’s ego a good boost, they don’t mean anything important.
Whereas actionable metrics are gold in the world of analytics!
These are the stats and figures that actually matter! Why would you focus your time and energy on tracking your 100,000 Instagram followers (vanity metric) if you aren’t keeping track of your actual consumers, conversion rate or customer satisfaction.
“vanity metrics are dangerous.”
We cannot tell you how many highly successful companies we have worked with, with less than 100 Instagram followers. Same goes for the flipside, we cannot count on one hand how many companies we have seen
So why do people buy into vanity metrics?
To put it plain and simple, they look good. Impressive, one dimension figures are fun and sexy. Complex, multi-dimensional metrics can be well… complex, requiring a certain level of specialised knowledge.
When a business has thousands of followers they feel popular. But what does that popularity mean if you don’t have a single, paying customer? As Eric Ries says, “vanity metrics are dangerous.”
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What can you do? Track these actionable metrics, and thank us later…
Wave goodbye to your previous self that cared about the superficial numbers of the analytics world and let’s focus on the new you! So what should you be tracking: