As marketing becomes increasingly data-driven, we have to be careful we’re measuring the right metrics. It’s easy to cultivate a false sense of security looking at rosy marketing dashboards that don’t actually tie to business results.
I like how Lloyd Tabb, Founder and CTO of Looker, distinguishes between vanity metrics and clarity metrics.
In his words:
“Vanity metrics are surface-level metrics. They’re often large measures, like number of downloads, that impress others. Use them to initiate partnerships and gain a following.
“Clarity metrics are operational metrics, like the number of minutes a day your product actually gets used or how long it took for a user to get service. These are the hidden gears that drive growth. Use them to solidify your competitive advantage.”
Lloyd framed this distinction in the context of tech startups, but I think the lesson holds true for all aspects of marketing.
Here are a few related cartoons I’ve drawn over the years:
“Marketing Vanity Metrics” February 2016
“Correlation versus Causation” April 2014
“Marketing Seat at the Table” May 2015
Allen Roberts says
Vanity metrics, and those who use them as justification of anything at all, are the bane of my life!!