Value of a few metric
The digital world generates tons of data every day. Tons of data means tons of metrics to keep look at. Do we need all of them? I don’t think so… Do we need 10 metrics to measure our web performance? I don’t’ think either.
I believe we need 4 metrics only. Don’t get me wrong of course there’re different scenarios for every business but generally speaking all goes down to the company resources and actual value these metrics provide. Basically why would you measure something that you can’t change?
Metrics by themselves don’t tend to provide any value, moreover they are super demanding timewise to keep an eye on all of them. More metrics we have, more time we spend on analysing them. Something will ALWAYS go up even though the majority of metrics show otherwise.
Metrics are valuable only when we take real actions in order to improve them, so we leverage our data, we make data driven business decisions.
What should we do?
Chose only 4 of them and make them perfect then move to the new ones. Always pick goals which can make real business impact. You have a led gen campaign? Focus on only one macro goal – Conversion rate on a Landing page (users submit something).
Find a couple of supportive metrics to measure the steps in the middle of a customer journey. What are those metrics?
Now you have only 4 metrics to worry about and it’s time to make it perfect.
Focus on ultimate goal – Conversion rate
Improve it to the level where the cost of improvements can’t be justified by return on these changes. For example if you feel that further optimization will increase our conversion by 5% only and it means $5 in revenue versus cost of these changes is $10 will mean that it is time to change your metrics.
Value of a few metric
Value of a few metric
The digital world generates tons of data every day. Tons of data means hundreds of metrics to keep up with. Do we need all of them? I don’t think so… Do we need 30, 20 or 10 metrics to measure our web performance? I don’t think so either.
I believe we need 4 metrics only. Don’t get me wrong of course there are different scenarios for every business but generally speaking, it all come down to the company resources and the business impact. Ultimately we just care of the value these metrics can provide.
Why would you measure something on everydaybasis if you don’t have resources to change it?
Metrics by themselves don’t provide any value, moreover, they are super demanding timewise to keep an eye on all of them. More goals/metrics/KPIs we have, more time we spend on analyzing them.
Something will ALWAYS be up even if other metrics show everything is down.
Metrics are valuable only when we take real actions in order to improve them, so we leverage our data, we make data-driven business decisions.
What should we do?
Chose only 4 of them and make them perfect or close to perfect then move to the new ones. Always pick goals which can make a real business impact. Do you have a led gen campaign? Focus on only one macro goal - Conversion rate on a Landing page (users submit something).
Find a couple of supportive metrics to measure the steps in the middle of a customer journey. What those metrics are?
We can get a lot of insights just from these 4 metrics.
Now you have only 4 metrics to worry about and it’s time to make it perfect.
Focus on ultimate goal – Conversion rate
Improve these 4 METRICSto the level where the cost of improvements can’t be justified by the returnon these changes. For example, if you feel that further optimization will increase our conversion by 5% and it only means $5 in extra revenue versus the cost of these changes is $10.
Find new metrics to focus on and make an impact there.
Never forget the initial purpose of analytics is to help business decision making.
Measure – Analyze – Improve – Impact