What is the vanity of metrics?
To make it simple, Vanity metrics are metrics that cannot help you to make decisions. They divert you from significant data. They can make you feel good about the site but really will not mean to bring in the expected impacts. Some examples include site visits, time on site, pages/visits, likes from social media, etc.
Some tips to tackle the vanity metrics
* Start from direct impact on revenue metrics like
a) The conversion: How many have entered into a business with you
b) Total revenue: The total amount of money you have
c) CLV- Customer Lifetime Value: How often you are paid
d) CAC- Customer Acquisition Cost: Cost involved to gain new customers
e) AOV-Average Order Value: Money you gain at a time from customers
f) Churn rate: How many people quit
* Then go for indirect impact on revenue metrics like
a) MOI- Marketing return on Investment: How much money you gain as a result of marketing
b) Cost Per Order: How much each order cost you, based on marketing expenses
c) Customer Retention Rate: How long customer stick on to you
* Filter out the actionable portion from vanity metrics
a) Keyword search volume: Monitor the traffic potential, and look for the high traffic keywords.
b) The number of organic keywords: Go for the distribution of its positions
c) Total number of backlinks: Check for the quality, relevancy as well as diversity
So are vanity metrics useless?
This is a question of real importance in this context. The answer is, certainly, no. First, you need to focus on actionable metrics and then on vanity metrics which will give you an overall picture of the business engagement.
In order to avoid a mislead by vanity metrics, you need to be constantly in touch with your customers and take a regular feedback from them. Inquire about what they liked the most about your product, how did they come to know about it, how is the experience, to get a high quality, transparent, and reliable data.
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