Vanity metrics and me

As we dive into the jargon and definitions of SEO and web analytics the term 'vanity metrics' has caught my eye. It sounds so scandalous. So what are vanity metrics and do they deserve an uneasy pause? 

Eric Ries’, creator of Lean Startup, states that vanity metrics "are numbers that startups parade around to impress their customers, their venture investors, or (worst) themselves. They are numbers that tell you almost nothing about whether the business is actually succeeding."  

These are the metrics that make you look good but that is about it. Looking good is not all bad but it can be a distraction and it can impact ROI if the wrong data is being collected for the wrong reasons. 

In practical terms vanity metrics are things like downloads, registered users, and raw pageviews. Brad Smith of socialmediatoday.com lists three 'fooolish' vanity metrics that can destroy online marketing:

• Keyword rankings - "When every single person's search engine rankings are unique to them, it really doesn't matter where your keywords rank - because they're different for everyone!"
• Followers and fans - "These numbers are essentially useless…it sounds good in a meeting, but it doesn't translate to actionable metrics that your business can make decisions with." Numbers are empty without a set baseline and a focus on growth rate over a set period of time.
• Email open rates – Technical issues make this highly unreliable and if the data is unreliable it cannot be used to make informed decisions. There are better ways to track engagement. 

Vanity metrics remind me of a similar problem found with young designers.

Design software is full of fancy bells and whistles. Playing with these tools is a lot of fun but it becomes a serious distraction. There is a lot of poor design out there because of overused filters and photoshop effects. It’s not ok. In the same vein there is a lot of businesses out there falling short with their marketing strategy because they are focused on gathering the wrong data.  By default if the data collected cannot be used to impact decisions then it is not useful. All data should be actionable.  KISSMetrics.com states that “at their core, actionable metrics are geared to answer these questions:

• How do you gain or lose revenue?
• How do you gain or lose customers?
• What are the key functions and benefits that people are coming to you for.” (Lofgren, 2011)

The author goes on to state that Google Analytics is guilty of focusing on vanity metrics. He grumbles that their emphasis on visitor’s overview is a ‘data puke’ and if Google Analytics is going to be useful then “you need to enable ecommerce tracking, define goals, and calculate goal values so you have actionable metrics to work with.”

That makes sense. Actionable metrics will produce results. Vanity metrics will make us feel good and waste a lot of beerbuttbubbba's.com (see top image) time if they are not careful. In my opinion there is room for both. Actionable is crucial and the vanity metrics, that keeps things fun, even if it is in limited bursts.

There is a growing number of companies are offering the collection of vanity metrics as a service to their customers. Here is an example. I recently signed up with Vizify, a service that offers me the ability to have  "one definitive, multidimensional, graphical biography on the web. They provide a beautiful interface and fantastic user experience.  It makes me look good, and as a professional in the creative industry this is extremely important.  These guys are my new best friends. 

 Vizify also offers analytics. I can view visitors, page views and clicks on my signature. Awesome, unless no one clicks, then it is hit to the ego, but that is ok too, at least you know none of your contacts are reading their emails. These metrics are vanity metrics. They tell us just enough. The average Joe is just looking for the basics, are people visiting my site? That is all the data they can handle. It has value, even if it is just a boost to the ego or a reminder that no one knows you exist unless you get aggressive with communication strategy.  With only one visit in the month of November, I have some work to do.

Cheers.

References

Lanier, Newman. (2012) Vanity Metrics and Real Beauty. Retrieved on November 4^th, 2012 from http://abetteruserexperience.com/2012/09/vanity-metrics-and-real-beauty/

Smith. Brad, (2011) 3 Foolish Vanity Metrics that Destroy Your Online Marketing. Retrieved on November 4^th, 2012 from

http://socialmediatoday.com/fixcourse/574771/3-foolish-vanity-metrics-destroy-your-online-marketing

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Lofgren, Lar. (2011) Metrics, Metrics On The Wall, Who’s The Vainest Of Them All?

Retrieved on November 4^th, 2012 from http://blog.kissmetrics.com/vainest-metrics/