Know how to analyze data to improve business growth

Vanity metrics

These data are useless (let's not be afraid of words), they measure data that, if not correlated with others, do not allow to indicate if there is a progression or not. At best, vanity metrics allow you to flatter your ego by showing (big) numbers, but their real impact is easily questionable.

Here are some examples:

• The number of subscribers or followers (but how many are really engaged?)
• The turnover (but what is the profit?)
• The number of customers (but how many have bought more than once?)
• The number of installations (for how many de-installations?)
• The number of page views (for what bounce rate?)
• The number of sales (and how many refunds?)

Valuable metrics or actionable metrics

A valuable metric is a piece of data that can be used to take action on it. It is also called "actionable metric" precisely because it is possible toactivate tangible improvement levers for the business and to measure their progress.

Here are some examples:

• Net profit (probably the most important)
• The growth rate of the turnover (measure of the evolution)
• The transformation and conversion rate (leads that become customers)
• The number of visits per channel (to diversify your traffic sources)
• Transformation time (the time it takes for a prospect to buy)

As you can see, these last examples have a real purpose: to measure the "health" of a company. Acting on one of them will inevitably result in an increase of the cash flow.

That's a lot of numbers, no doubt about it. But when you know that some data is important for some businesses, but not for others, it's easy to get lost! Fortunately, our experts know how to handle these indicators. They can help you find the right direction for your business, by indicating the metrics to follow according to your activity. You can then focus on the essential indicators to measure the growth of your company.