In the KPI article, we saw that running a business without relevant and suitable KPIs is as dangerous as driving a car without a speedometer. But there is a more dangerous trap that businesses can easily fall in. The Vanity Metrics pit.
New ecommerce businesses know that they need KPIs and metrics to control their performance. We all heard it thousands of times. However, many of them due to their lack of experience, will jump out of the frying pan into the fire!
Some metrics might make you feel good, but they don’t necessarily reflect the true success of your business. These misleading metrics are known as vanity metrics.
Find out what is a vanity metric and how to avoid them in your Ecommerce business by reading this article.
Vanity Metrics Definition
The first question we need to answer is this: What is a vanity metric?
They are quantitative indicators that measure aspects of a business that are not directly related to its desired goals or outcomes. Vanity metrics are often used to create a positive impression of performance or progress, but they do not provide actionable insights or guidance for improvement. In other words, looking at them makes you feel good or make your business look good in the eyes of others, but It does not mean that your business is really doing good.
Likes, shares, and page views are classic examples. While they may stroke the ego, they don’t necessarily lead to increased revenue or customer satisfaction.
Vanity Metrics Examples
Vanity Metrics Social Media
Social media platforms are breeding grounds for vanity metrics. A large follower count might seem impressive, but it’s worthless if those followers aren’t engaged and converted into customers. Instead, concentrate on metrics like click-through rates, shares, and comments. These metrics showcase genuine engagement and interest.
The definition of vanity metrics totally depends on your Ecommerce business. For example, if you have an online store website, even the number of…
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