60-Minute Entrepreneur: Identifying Vanity Metrics
Only have 60 Minutes to focus on your business this week?
Can you be an effective entrepreneur in only 60 minutes? YES!
This series brings together 60-minute exercises you can do now to grow your business faster with greater clarity. Check out our previous post on creating a business model using the Lean Canvas.
In this post, we go over Vanity Metrics and how by asking three simple questions you can identify those metrics which are holding you back.
Vanity Metrics
Vanity Metrics are those ego-boosting metrics that feel good but are NOT moving your business toward your goals.
The development of Vanity Metrics can occur at any stage in the entrepreneur’s journey. But, let’s start at the very beginning, measuring interest in your idea, to see how Vanity Metrics might develop. Remember, the emotional journey of entrepreneurship shouldn’t be underestimated, it’s filled with the excitement of opportunity and the challenges stemming from self-doubt.
In the earliest stages, you may start measuring interest in your idea by asking friends, family, colleagues, etc. for feedback, or you might set up a website, social media profile, etc., and start monitoring activities such as likes, follows, or traffic. The positive accolades will be encouraging, but you don’t want to confuse recognition with progress towards business goals.
By identifying the feel-good metrics which motivate you but aren’t moving your business goals forward you will find the true motivation of entrepreneurship by building the business you desire by being a successful entrepreneur.
The three-step process for identifying a Vanity Metric
The example of measuring interest is one way a Vanity Metric might appear. In fact, it’s one of the most common and easiest Vanity Metrics to talk about. However, you want a way to identify a Vanity Metric before it costs you time and money.
To do this we came up with a simple three-question process to help you to Establish, Identify, and Learn from your metrics to be a more effective entrepreneur repeatedly.
The first question, “What is my goal?” Some examples might include, increase traffic to your website, increase subscribers, etc. Only you can identify your goals.
The second question, “Is this metric in service of my goal?” An example metric you might be using is increasing paying customers and your measure is how many “Likes” you are receiving. If this was one of your metrics then ask yourself if this measure is in service of my goal. If the answer to this question is NO it is not in service of my goal then it’s a Vanity Metric.
The third question, “If this metric is a Vanity Metric, why am I valuing this metric so highly?” Now that you have identified the Vanity Metric true learning will come when you explore the reasons you are valuing this Vanity Metric.
Onward
You have a simple process to identify Vanity Metrics which are not helping your business or you to grow. By moving from identification to insight about your Vanity Metrics (step 3) you can apply the knowledge to truly accelerate your growth.
If you are stuck or unsure how to apply the insights you are learning from identifying your Vanity Metrics then contact us and find out how we can help.