𧡠Mistakes In Defining Metrics π§΅
This is not an exhaustive list by any means, but these are 6 mistakes I see in defining metrics over and over....
This is not an exhaustive list by any means, but these are 6 mistakes I see in defining metrics over and over....
1 - Metrics before Strategy
Your metrics are a reflection of your strategy. They help answer, is the strategy working? Metrics without strategy is looking at a bunch of random numbers. Define the strategy before you define your metrics.
Your metrics are a reflection of your strategy. They help answer, is the strategy working? Metrics without strategy is looking at a bunch of random numbers. Define the strategy before you define your metrics.
2a - Definition Is More Important Than A Dashboard
People focus on "building a dashboard." 10X more important is choosing which metrics are important and defining those metrics well. Defining is more complicated than people think...
People focus on "building a dashboard." 10X more important is choosing which metrics are important and defining those metrics well. Defining is more complicated than people think...
2b - For example, there are many ways to define a retention metric depending on your product. Your dashboard is a method to communicate your metrics, which is important, but useless if you choose and define them poorly.
3a - Outputs vs Inputs
Most metrics like a retention metric or revenue metric are output metrics. These are metrics you should monitor. Giving output metrics to teams as goals can be dangerous. They need to break them down into input metrics to make them actionable...
Most metrics like a retention metric or revenue metric are output metrics. These are metrics you should monitor. Giving output metrics to teams as goals can be dangerous. They need to break them down into input metrics to make them actionable...
3b - When output metrics are given as goals, teams can often focus on the wrong inputs or thrash between inputs.
4 - Usage First not Revenue First
This is the most common version of outputs vs inputs. Usage creates revenue, revenue does not create usage. As a result, the most important metrics in terms of creating growth are not your revenue metrics, they are your usage metrics.
This is the most common version of outputs vs inputs. Usage creates revenue, revenue does not create usage. As a result, the most important metrics in terms of creating growth are not your revenue metrics, they are your usage metrics.
5a - Mixing Up Retention and Engagement
I see a lot of teams think retention and engagement are the same things. They are not. Retention is binary. It answers the question, was this person active within my defined time period? Yes or no. Engagement is...
I see a lot of teams think retention and engagement are the same things. They are not. Retention is binary. It answers the question, was this person active within my defined time period? Yes or no. Engagement is...
5b - Engagement is depth. It answers the question, how active were they within the defined timed period? 0βN. Engagement is one of three major inputs into driving retention.
6a - Customers vs Users
A customer and a user is not the same thing in most business models. A customer is defined as the person/group that is paying you. A user is a person using the product.
A customer and a user is not the same thing in most business models. A customer is defined as the person/group that is paying you. A user is a person using the product.
6b - In subscription products, oftentimes there are multiple users associated with a single customer. Or people are users before they are a customer. You need to separate the definition and language between these two things for teams to clearly act on them.
Full list of these mistakes here -> brianbalfour.com/quick-takes/coβ¦
What are some other ones you see often?
What are some other ones you see often?
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