Jo Johansson is the content strategist at Geckoboard where she plans, produces and publishes content. This post originally appeared on the blog Geckoboard.
Everyone loves a lot. Startups and established companies tend to boast of their growth parameters: page views, registered users, downloads, social following. The list is long.
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Although these measures could be pulling signs, more often than not they are just empty numbers. The danger lies in the vanity of measures is that they can distort your perception of reality. And with a biased perception of your business, how are you supposed to make decisions that will help you take your business in the right direction?
Let's take a look at exactly how dangerous vanity metrics can be.
Which is a measure of vanity?
A measure of vanity is a number that is easy to handle and are not directly related to your business goals. The truth? These are just numbers that make you feel good, but they do serve to nothing real.
For example, you managed to acquire a large number of registered users on your site. Yay! It's awesome. But what you should really be looking at is cost per acquisition (CPA) and the activity of the user. How you did it cost to get those users registered? What kind of actions can you take to drive the cost down? What these users are doing on your site compared to what you want them to do?
all comes down to how much money you spend and how much you earn. Simple!
of reality distortion field
The distortion field of the long-term reality (RDF) was coined by Bud Tribble at Apple Computer in 1981. He used it to Steve Jobs Steve Jobs described the presence and charisma and its effect on the people around him, particularly, people who worked for him.
"In his presence, reality is malleable. He can convince anyone of practically all '-. Bud Tribble on Steve Jobs
Andy Hertzfeld, a member of the original Apple Macintosh team in the 1980s, said that Jobs had the ability to convince others to believe almost anything using a mixture of charm and charisma. This would create a distorted perception of tasks for those who were subject to the RDF, which makes them blind to the reality of the difficulties and challenges they would face.
So what does the distortion field of the reality of Steve Jobs and vanity measures have in common? If you have not already, you are about to get the idea.
Lights, camera, action vanity: The negative effect on your business
In addition to his undeniable charisma, the distortion field of the reality of Steve Jobs has often been described as his greatest default - a double edged sword which makes him a control freak and rigid perfectionist. Elizabeth Holmes, another Apple Computer employee earlier said: "It was dangerous to get caught up in Steve's distortion field, but it was what led him to actually be able to change reality."
this is exactly what the vanity of measures will do. They will create a perception of your business that are not your reality.
Say you are an e-commerce and you've reached one million registrations. this number does not mean anything if you do not sell. Or if your average basket is lower than it should be in order for you to be profitable. the numbers on the surface are not those who will tell you the truth about where your business is at.
Do not look at the roses, dig in the mud
We are all swimming in a sea of data, and it is difficult not to be distracted by all the major attractive numbers. the numbers you write the more your partner by telling them how you do.
However, the novelty will wear off and reality will hit: no numbers - regardless of size - will take precedence over reality. So look at the numbers who will be the drivers of change, even if it is difficult to face. Because companies that will in a better place and in a much better reality.
It will be worth it, we promise.
What are your thoughts on growth measures? Use the comments section below to share your thoughts and opinions.
The metric more: Why you should not always focus on growth