Vanity Metrics vs. Actionable
Vanity Metrics are those that aren’t actionable, and can lead you to waste time and resources. For example, vanity metrics like page views or the number of followers on Twitter don’t help you take any action for your business; they’re only good at making us feel better about ourselves! You also often hear about companies who measure their success by how many Likes a Facebook post gets – but these numbers won’t tell them anything important about what happened after someone clicked “Like.” And it’s not just social media: some businesses use total visitors as a metric because they think more traffic means more revenue. But this isn’t true in every case. One company might have one customer visit per month while another has 100 customers each week. It’s important to have an understanding of which types of metrics are most important for you to track in order to grow your business sustainably and make it a successful one!
Actionable Metrics focus more on conversion rates – how many people buy something based on what they see online. One good example is the amount of money spent when someone clicks “Buy” after seeing an advertisement – that information can be actionable because then the company has hard data about its marketing strategy, so it knows if it should change anything or not. If we want our companies’ success-stories, we need actionable metrics!
Vanity metrics are dangerous because they don’t help you take any action for your business.
The most important metric to track is conversion rates, which show how many people buy something based on what they see online.
We can measure the success of our marketing strategy with hard data by tracking the amount of money spent when someone clicks “Buy” after seeing an advertisement.
The following would be a good list of vanity metrics:
Google Page Rank, social media followers (such as Twitter), total visitors.
A few examples of actionable metrics are conversion rates and revenue. In order to maintain our company’s success-stories, we need more actionable metrics!
Some business owners take the actions that they believe will produce results based on these types of data points which can lead them astray from what is truly important for their business growth strategy. To avoid this problem it may be best to focus on one or two key performance indicators that help you accomplish your goals in an easier way. For example if I am looking at increasing profitability then perhaps my top three KPIs should track how much money is coming in, how much money is going out, and then my profit margin.
The following would be a list of key performance indicators for growth: revenue, marketing costs, advertising effectiveness. These three metrics help me determine if I am making the right decisions with regards to my company’s profitability by tracking what comes in and goes out as well as measuring success based on advertising expenditures which gives me an idea about whether or not people are buying after seeing one of our ads.
We all want our companies’ success-stories but this won’t happen without actionable data points!
A few examples might include conversion rates (e.g., number of visitors who buy something based on what they see online), total monthly sales volume (in dollars), and total monthly marketing expenses.
The post also includes a list of actionable metrics, which are conversion rates and revenue. It makes sense to focus on these two types because they help you accomplish your goals in an easier way by focusing on key performance indicators for growth: revenue, marketing costs, advertising effectiveness; all three determine if I am making the right decisions with regards to my company’s profitability by tracking what comes in and goes out as well as measuring success based on advertising expenditures.