What Are Vanity Metrics and Actionable Metrics?

Vanity Metrics:

Vanity metrics are numbers that look impressive but don’t really help you make your product better. They can make you feel like you’re doing well without actually providing useful insights. Examples include:

- Number of page views

- Number of downloads

- Total registered users

These numbers may look good but don’t always tell you if users are happy or if your product is improving.

Actionable Metrics:

Actionable metrics give you information that can lead to decisions and improvements. These metrics show how users interact with your product and how satisfied they are. Examples include:

- Customer retention rate

- Daily active users (DAUs)

- Customer lifetime value (CLV)

- Conversion rates

Actionable metrics help you understand what is working and what needs fixing.

How to Identify and Avoid Vanity Metrics

Identifying Vanity Metrics:

To spot vanity metrics, ask yourself:

- Does this number show how well my product is doing?

- Can I use this number to make improvements?

- Is this number related to my goals?

If the answers are mostly no, then it’s probably a vanity metric.

Avoiding Vanity Metrics:

1. Focus on User Behavior:

Look at how users interact with your product. Metrics like DAUs, engagement rates, and task completion rates are more useful than just counting downloads or page views.

2. Match Metrics with Goals:

Choose metrics that are connected to what you want to achieve. For example, if your goal is to keep users coming back, look at retention rates instead of just total user registrations.

3. Use Group Analysis:

Divide your users into groups to see how different sets behave over time. This helps you understand engagement and retention better.

4. Ask for User Feedback:

Combine numbers with feedback from users. This gives a full picture of what users think and helps you focus on the right metrics.

5. Regularly Review Metrics:

Check your metrics often to see if they still matter. If a metric stops being useful, stop tracking it and find a better one.

Vanity metrics can look nice but don’t help you improve your product. Focus on actionable metrics that align with your goals and provide useful insights. Regularly review and adjust your metrics to keep your product on the right track.