Last few days, I have been studying a core marketing parameter which makes me know about lots of fundamental issues concerning online marketing.
The issue I have been dealing with named Vanity Metrics vs Actionable Metrics. I was in so much confusion before my analysis, now it becomes much more reasonable to me.
Before digging into…
Metrics and numbers are important in all kinds of marketing but not all of them aren’t equally significant. I was reading an article and I just stumbled, asking myself what was the actual value in some of the metrics that I was always looking for.
Over the next couple of days, it kept popping up in my mind, therefore, I started to read more on the subject. That’s why I decided to share my understanding with others hoping that it might help others to find a better solution in their marketing campaigns.
Most of us think that information or data is always a great thing, right?
The more you have the information about any specific things the more you can asses that specific thing precisely. The more information means the more you have the possibility to make a decision that will ultimately boost up your business activities. But all the information is not potential and the quality of your information matters a lot.
What you have read now, all that is ok but it’s not legit all the time in all the conditions. All the information you collected is not beneficial for your business. Some of the data are worse than worthless which bears the wrong impression for our business. Some of the data are so helpful which makes you able to make a solid decision and get your business grow faster.
For any kind of metrics, you need to have enough information about the specific subject. An effective way of knowing more about your business is metric analysis. Metrics are calculations or estimations that determine how your business is performing in particular fields. But all the metrics don’t bear the same significance as they have distinguished quality in particular.
In marketing, we see there are two most popular metrics and they are ACTION METRICS and VANITY METRICS. These two types of metrics have them different nature and should not be treated in the same way for getting the best result of anything especially in business.
Vanity Metrics vs Actionable Metrics
Now, I am going to explain these two different metrics distinctly. Let’s start with vanity metrics first.
1. Vanity metrics
As the name implies, Vanity Metrics are things that you can measure but ultimately it will turn into nothing. They are simply manipulated as they don’t bear any significant relationship with the number that articulates to business gain or progress.
It’s a report or a set of information that makes you feel apparently satisfying about what you are doing in business, but ultimately turns into no effect on your business outcome. Initially, it looks great but ultimately it will not support you to create a growing marketing strategy.
Nowadays, by knowing or without knowing most of the marketers are focusing on the growing various vanity metrics, as a result, at the end of the day, they are not getting any expected sales and ultimate revenue.
Typically it comprises fundamental measures like page views, total download, registered users and social media likes etc. They don’t relate to the number of active users, cost of acquiring new customers, user engagements, profits, and revenues etc.
It is very much important for business owners to properly instrument the data what they already tracked so that they can manage the true strength of their respective business. In this case, if they only count vanity metrics, they might get a false sense of success.
An android app could have millions of download but could have only hundreds thousand active users, so here, only the number of download can’t provide a healthy amount of data which could be the sound source of a healthy decision.
The vanity metrics are not completely worthless at all, just keep in mind that you shouldn’t be tricked by them. There are some methods to back into real numbers from the vanity metrics. You can turn vanity matrics into actionable metrics by different ways.
Such as 30 percent of total downloads or registered users are active twice a month, 15 percent are active once a day, and 10 percent fo the regular users will be the maximum number of parallel users. These are some of the patterns a company can assess.
Vanity metrics can be used in marketing and for initial branding in some cases. By showing total viewers, total likes, and total downloads, you can have a proper initial image of a particular thing. But for taking a solid decision, it wouldn’t wise to consider vanity metrics as a prime factor.
2. Actionable metrics
Actionable metrics are such metrics that empowers business owners to make decisions and inspire to take action-oriented behavior. It ties definite and repeatable actions to respected results. Actionable metrics measure the volume of human effort versus use case performed.
In general, actionable metrics imply such metrics that help to take any action or make a decision. It gives a total view of a business process that ultimately turns into revenue. Actionable metrics simply show you a comprehensive way of gaining revenue.
It also indicates a gateway for getting customers and show you what kind of people coming to you and what is the actual reason for their coming. These all types of data help you to move forward and make a good decision out of the box.
There are certain factors that can determine your standard of measurement regarding actionable metrics. Here, they are given below with an explanation.
i. Content measurement
The quality content could be one of the best reasons for being a metrics actionable. Moreover, the amount of fresh, quality content on a page can play a vital role in making your metrics more actionable. You just have to think this in a proper way.
You may contain many pages that are fragile or might contain duplicate content on your website that could possibly affect your entire site to the falling rank of Google Panda. There are some ways to asses your site like AB testing, using the custom variable to your site.
Revenue Tracking can be a great metric as it is the prime concern of your business. The revenue can be measured if you consider the two most important factors. One is you have to customize your analytics with goals and another is the customer value. You have to track where the revenue comes from, and who the person pays you.
iii. Visitors who only view your product page
The page view is the first attempt at selling a product and this part is very important to take into consideration. There are some of the e-commerce sites that think that visitors will visit their site automatically through searching for their own interests.
It’s total sucks! now the time has changed and the marketing policy also has been changed. There can be any obstacle to visiting your site for a visitor to get into your product pages. It can happen for poor navigation design, bad internal site search, obscure category names, etc.
In addition to that, many websites especially e-commerce sites contain a blog section, videos section which could be detrimental for capturing visitor’s interest. They could easily get distracted by one of those sections and ultimately end up leaving without ever seeing the product page.
iv. Analyzing leads and customers
It’s important as like as the revenue that tracts the people who bring it to you and it’s really very crucial to know where they’re from. There are a plethora of platforms in the digital arena like social, organic search, paid traffic, referrals, and so on. If you only concentrate on visitor’s data in your leads and customers, you will only get overlooked as they are a small portion of your gross visitors.
iv. Loading speed
The page loading could be a cause of actionable metrics as Google is mostly obsessed with the speed. There are lots of tools to measure the page speed of a certain page. A faster web better experiences for everyone and we almost all get so much bored when a page takes longer than a few seconds to load.
Google confirmed site speed as a part of the algorithm. Moreover, you should be concerned about the speed because it is important to catch your visitors. If a visitor gets bored by hanging around waiting for the page to load, they will most probably not come to your page again.
v. Analyze your funnel
The funnel is the main gateway of conversion, so it should be under control. It’s better to track every stage of the funnel and put your best effort into it to maximize the ultimate conversion rate. Always look up where in the funnel disruptions occur and people are facing trouble in the process.
vi. Conversion rate
The conversion rate is one of the best factors for evaluating actionable metrics. First of all, you should track site-wise conversion rates for tracking a total conversion, then you can go into a deeper for having solid metrics. Conversion rates are also used in traffic sources and specific marketing campaigns. You should observe your conversion at different steps of your funnel so that you can feel it to take action.
Before ending the write-up, I would like to say that do not waste your valuable time concentrating on vanity metrics as it seems admiring yourself in front of the mirror. Instead, I would highly recommend you to focus on the actionable metrics to get the ultimate conversion into your business.
I hope this article helped you to know about the Vanity Metrics vs Actionable Metrics for your marketing campaign. If you want to share anything regarding the article, please let me know by leaving a comment below.