Did you know there are two types of metrics you could measure? 🤔
The two types are vanity metrics and valid metrics
The likelihood is that you are probably only focusing on one of them, and that is negatively impacting the way you look at your business
What are vanity metrics?
Vanity metrics tend to be vague, can be a bit of an ego booster and don't always tell you a story which is why they tend to be pointless when looking at the bigger picture
While tracking vanity metrics can be helpful, you need to know precisely why you are using them and what you are using them for
Before I start tracking any vanity metrics, I like to ask myself the following questions
➡️ What business decision can I make with the metric?
➡️ Will I be able to use this data to repeat the same result?
➡️ Is this data going to tell me the truth about what is happening?
Let's use an example of Instagram likes, comments, shares and saves
✅ What business decision can I make with the metric?
I can use the data when creating my content strategy as I'll know what content resonated with my audience
✅ Will I be able to use this data to repeat the same result?
Yes, I can continue to use this data every month to drive my content strategy and see what works and what doesn't
🤷♀️ Is this data going to tell me the truth about what is happening?
This is hugely dependent on Instagram's algorithm 📲 and how quickly I can adapt my strategy to the new tests and features they roll out
I think ticking two out of three is fine and would use this metric to help me market my business
If you are unsure whether you should be tracking a metric in your business, ask yourself these questions and see what comes up for you
Other examples of vanity metrics you might want to track are
✨ Number of page 1 keyword rankings
✨ Instagram followers
✨ Page viewed
✨ Number of opt-in downloads
Ready to start tracking your marketing metrics? 👇
What are valid metrics?
Valid metrics focus on what impacts your bottom line when it comes to conversion and revenue 💰
These tend to help you figure out if your marketing is successful and whether your strategy is helping you reach your goal 🥅
Some examples of vanity metrics are
✨ Conversion rates
✨ Customer churn rate
✨ Customer lifetime value
Which valid and vanity metrics should you be measuring?
The easiest way to find out which metrics you should be measuring in your business is to set up a marketing measurement plan 📈
This gives you an overview of the different data points you need to measure, so you have a clear picture of what is happening in your business
📚 Related: What is a marketing measurement plan?