Bonfire of the Vanity Metrics: Numbers You’re Still Using and Shouldn’t
Bonfire of theVanity MetricsIvory Madison (not pictured)CEO and Founder, Red Room
“There is no safety in numbers or in anything else.” –James Thurber
Vain, Vainglorious Vanity: Not Good for Business • Vanity blinds you to a lack of product/market fit. • It commits you to your original vision without agility. • It gets you invested in appearances, not reality.
“Like dreams, statistics are a form of wish fulfillment.” –Jean Baudrillard
Vanity Metrics: The MostCommon Form of Success Theater • Living beyond your means: unsustainable • Spending energy merely looking successful: stupid • Exaggerating your accomplishments: dishonest
Mark Twain said:“Facts are stubborn, statistics more pliable.”
Notorious Vanity Metrics: What Numbers Not To Use• Pageviews • Percent Growth• New Members • Conversion Rate• Total Members • Twitter followers• Unique visitors/visits • Facebook friends/likes
“This is the way the worldends, not with a bang but a whimper.” –T.S. Eliot
Characteristics of Actionable Metrics• Measures success at your core business. • Shows or directly relates to revenue. • Tracks real, individual customers. • Illustrates cause and effect. • Leads you to what to do next.
“I’m not prepared for a zombie apocalypse. I need more bottled water, a shotgun, and stronger abs.” –Jenna Fischer
Your Four:The Most Important Metrics(The Four Horsemen of the Apocalypse) • Measure Relevant Revenue • Measure Sales Volume • Measure Customer Retention • Measure Relevant Growth
“To see a world in a grain of sand…” – William Blake
Find the Big Picturein the Small Numbers• Real Lean Startups Don’t Flinch at Real Numbers• Business Lessons are Life Lessons• Vow to Give Up Vanity• Make the Vision About More Than Just the Numbers
The End Contact me: Ivory MadisonCEO and Founder, Red Room