I’m Sorry, But Those Are Vanity Metrics

After three decades leading data teams at companies like LiveOps, Netscape, and ReadyForce, Lloyd Tabb’s biggest learning isn’t what you would expect — or want to hear: You’re measuring the wrong metrics. We all are.

In this exclusive interview, Tabb shares how to abide by metrics that generate direction — not pats on backs — so that your company can act on what’s most essential to … [ Read more ]

Lloyd Tabb

A/B testing is monitoring without interacting. Put down the binoculars. Pick up the phone and call.

Lloyd Tabb

Once you get a user, attribute where you got them, how much you paid for them, and the time it takes to recover from that acquisition cost. Don’t stay on the surface. You paid for those clicks. You need to know. And that’s the only way you’ll truly understand your customer’s lifetime value.

Lloyd Tabb

Your metrics influence each other. You need to monitor how. Don’t just measure which clicks generate orders. Back it up and break it down. Follow users from their very first point of contact with you to their behavior on your site and the actual transaction. You have to make the linkage all the way through.

Lloyd Tabb

Averages are one-dimensional vanity metrics. Without context, they leave out the why.

Lloyd Tabb

Vanity metrics are surface-level metrics. They’re often large measures, like number of downloads, that impress others. Use them to initiate partnerships and gain a following.

Clarity metrics are operational metrics, like the number of minutes a day your product actually gets used or how long it took for a user to get service. These are the hidden gears that drive growth. Use them to solidify your … [ Read more ]

Lloyd Tabb

… metrics that are elevated — from daily active users to revenue growth — effectively compare companies, but don’t necessarily help them run better. In fact, these measurements often slant toward what investors want to measure, showing if a company is valuable, not how it can create more value. […] These metrics serve a purpose — just not every purpose. Vanity metrics aren’t useless. They … [ Read more ]