The document discusses the dangers of relying on "vanity metrics" and superficial numbers rather than actionable metrics that truly measure business success. It warns that vanity blinds companies to problems, wastes energy on appearances, and promotes dishonesty. Instead, it recommends focusing on a few key metrics that directly relate to revenue, track real customers, illustrate cause and effect, and guide the next steps. Companies should give up vanity and make their vision about more than just numbers.
2. “There is no safety in numbers
or in anything else.”
–James Thurber
3. 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.
5. Vanity Metrics: The Most
Common Form of Success Theater
• Living beyond your means:
unsustainable
• Spending energy merely looking
successful: stupid
• Exaggerating your accomplishments:
dishonest
7. 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
8. “This is the way the world
ends, not with a bang but a
whimper.”
–T.S. Eliot
9. Characteristics of
Actionable Metrics
• Measure success at your core business.
• Show or directly relates to revenue.
• Track real, individual customers.
• Illustrate cause and effect.
• Lead you to what to do next.
10. “I’m not prepared for a zombie
apocalypse. I need more
bottled water, a shotgun,
and stronger abs.”
–Jenna Fischer
11. Your Four:
The Most Important Metrics
(The Four Horseman of the Apocalypse)
• Measure Revenue
• Measure Sales Volume
• Measure Customer Retention
• Measure Relevant Growth
12. “To see a world in a grain of
sand…”
– William Blake
13. Find the Big Picture
in 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