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Vanity metrics don't matter, measure what is important

Posted by Danielle MacInnis on 5 June 2017

What are the metrics that really matter for a small business? Is it web traffic, retweets? Facebook like? These are often referred to as vanity metrics. The real numbers that matter a the customers you convert and keep. Working back from that number of the ideal customers you need to make your business model work is what it is all about.

Your business model might be like me to have a small number of clients using your services for a certain number of hours a week. I don't need to be attracting 100 qualified leads each month, so there is no point on my business focusing on this metric. However I do need to continue to add great value to those handful of clients. They do want me to continue to be up to date with the latest marketing tools and data so I can assist them in making the best marketing decisions for their business.

For my clients it really depends on their business model. Some need to close only a handful of large deals but have a very long sales cycle so they need a compelling lead nuturing strategy. Others need multiple small customers every month and so attracting ideal prospects and facilitating a sales call is critical. Mapping out the customer journey and what are critical touch points is key to using resources effectively.

To assist you in working out the metrics that really matter in your business, I suggest first you share your business model and objectives with your marketer and whole team. Get everyone focused on the metrics that really matter. 

My key metrics:

  • Number of qualify leads I attract and close as clients - measured by google analytics
  • Customer delight of my clients (NPS) Measured by survey and asking questions about my service.
  • Lifetime customer value (LCV) measured by amount each client spends as an average over their time with me.

Here is a KPI infographic you might find useful for planning. (click on image to enlarge)




Author: Danielle MacInnis
About: Dan is a customer centric marketer and the owner of MacInnis Marketing a company that creates sales and marketing systems to attract customers and employees to companies that they love.
Connect via: Twitter Google+ LinkedIn
Tags: Marketing Metrics Marketing Strategy

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