Vanity metrics vs. actionable metrics

Vanity metrics such as page views or followers are impressive on the surface, but rarely offer real added value for strategic decisions as they are often manipulated or lack context. Instead, actionable metrics that show clear connections to business goals and enable concrete options for action, such as conversion rates or engagement rates, are crucial. If you want sustainable success, you need to critically scrutinize superficial figures and focus on meaningful metrics.

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Max-Raphael Feibel
January 14, 2025
January 30, 2025

The truth behind the shiny numbers: Why vanity metrics mislead

Impressive figures are often bragged about in the digital economy: Millions of page views, thousands of social media followers or a high number of newsletter subscribers. But what do these figures really say about business success?

Digitalization has given us a wealth of data that we can track and analyse. However, it is precisely this abundance that often leads us to lose ourselves in superficial metricsthat look good but offer little substance.

What are vanity metrics?

Vanity metrics are key figures that appear impressive at first glance, but say little about actual business success. They flatter the ego but do not provide any real added value for strategic decisions.

Vanity metrics are particularly widespread in the start-up scene. Young companies like to use them to impress investors or to position themselves against the competition. But experienced investors and managing directors have long since learned to look behind the façade.

Typical examples of vanity metrics:

Page Views without context information

Social media followers without engagement data

Download figures without usage data

Newsletter subscribers without engagement rates

Registered users without active users

Gained leads without lead-to-contract rates

Example:

One million visitors to your website sounds impressive at first. But without knowing where these visitors come from, how long they stay and, above all, whether they carry out the desired actions, this figure is practically worthless.

Why vanity metrics are problematic

Lack of relevance for action

The biggest weakness of vanity metrics is their lack of relevance. If your website has 100,000 visitors but no one makes a purchase, what use is this information to you when making business decisions?

A concrete example: A social media manager proudly presents that the latest post has reached 10,000 likes. But if none of these "likers" clicked on the link in the post, were redirected to the store and bought something - what is this success worth?

Manipulability

Many vanity metrics can be easily manipulated. Followers can be bought and page views can be generated by bots. This kind of manipulation makes vanity metrics an unreliable basis for strategic decisions and competitive comparisons, as the underlying data does not reflect reality. Real business success can only be achieved and measured on the basis of reliable data.

Actionable Metrics: The better alternative

Actionable metrics are business-relevant key figures that have a direct impact on your company's success and indicate concrete options for action. In contrast to vanity metrics, they provide a reliable basis for decision-making for your business strategy and enable you to continuously optimize your measures.

An Actionable Metric should have the following properties:

Comparability over time: The indicator must be meaningfully comparable with historical data

Direct link to business objectivesAny change in the KPI should be reflected in the business results

Influenceability through concrete measuresTeams must have the opportunity to influence the KPI through their work

Traceable causalityThe relationships between actions and metrics must be clear

Examples of meaningful key figures

Instead of Page Views:

Conversion rate per visitor source
Average dwell time on purchase-relevant pages
Returning visitors with intention to buy

Instead of social media followers:

Engagement rate per post
Click-through rate on website
Leads/sales through social media traffic

Practical example: Online store analysis

Scenario 1: Vanity Metrics

500,000 monthly visitors
50,000 newsletter subscribers
100,000 Instagram followers

Scenario 2: Actionable Metrics

Conversion rate: 2.5% of visitors buy
Customer Lifetime Value150€ per customer
Repurchase rate: 35% within 6 months

Conclusion: The path to better business decisions

Vanity metrics may flatter the ego, but sustainable business decisions require meaningful metrics. Focus on metrics that:

have a direct link to business success
identify concrete options for action
cannot be manipulated
offer real added value for your strategy development

The switch from Vanity Metrics to Actionable Metrics is not a one-off action, but a continuous continuous process. With each business cycle, you learn new correlations and can further refine your metrics.

Only those who critically scrutinize their key figures and rely on actionable metrics can make well-founded decisions and achieve sustainable growth.