Definition
The vanity metric or vanity metrics are indicators that, although they may appear impressive at first glance, lack significant value for the development of a product or service within a business. They are often considered the opposite of actionable metrics, which are those that provide useful information for decision making. Vanity metrics are often used to impress customers or third parties, creating a false impression of growth or success. It is important to note that any metric can be considered a vanity metric at any given time, depending on its relevance and impact on a company’s strategic decisions.
How to identify vanity metrics
The main risk associated with vanity metrics is that they can divert attention from the indicators that really matter for the success of a strategy. To identify these metrics, it is useful to ask the following questions: Does this data contribute to strategic decision making, or are they simply impressive numbers that provide no real value?
Today, vanity metrics are especially common in the context of social media, where companies often focus on numbers such as the number of “likes” or followers, rather than metrics that reflect actual engagement or return on investment.
Examples of vanity metrics
Keep in mind that, as we have mentioned before, the same metric can be considered ‘vanity’ at a certain time or for a specific company and be actionable for another. It all depends on what the objectives of the marketing strategy are.
However, the following can be cited as vanity metrics models:
- Number of followers or likes on social networks (Facebook, X or Instagram). It is one of the most misleading. First of all, because followers can be bought, so the quality of followers has long since become more important than quantity. And, on the other hand, because a specific ‘like’ to a specific publication does not suppose any advantage for a brand. In this sense, it is more advisable to measure engagement (the average interaction of our followers)or specific actions, such as traffic to the website or other types of conversions.
- Number of visits to a web page. It is a very similar case to the previous one. What good is it for a business to have a lot of traffic to their website if their potential customers don’t execute the desired action? It doesn’t matter if it’s a purchase, a lead or a download. Factors such as the time the visitor spends on the site, the number of pages consulted, the bounce rate or if there has been an improvement in organic positioning should be carefully analyzed.
- The number of downloads from an app. Every developer knows that apps have a high uninstall rate. Therefore, a high number of downloads should initially be taken with caution and study their evolution in the medium term. On the other hand, if the download has a specific objective, such as getting records, it will also be necessary to quantify to what extent it has been successful.
- The open rate of an email. That a certain number of users open a message does not equate to the success of an email marketing campaign, unless the objective is to develop the brand image. If the recipients do not buy or access the website and stay only in the mail, the company will not obtain any profit. We must also consider the opposite case and conclude that a low open rate does not have to be negative if it involves another series of actions on the part of the user.
Consequences of using vanity metrics
Excessive use of vanity metrics can have several negative consequences for a company:
- Resource Diversion: Companies may spend time and resources on improving vanity metrics instead of focusing on indicators that actually affect business performance and growth.
- False Sense of Success: Reliance on vanity metrics can lead business leaders to believe that their strategy is working when, in reality, they are not achieving meaningful results. This can result in poor strategic decisions.
- Team demotivation: When employees see superficial metrics being prioritized over tangible results, they can become demotivated and lose confidence in the company’s management.
- Impact on Decision Making: Vanity metrics can cloud the judgment of decision makers, leading them to ignore more relevant data that could guide strategy more effectively.
- Brand Reputation: If a company is perceived as focusing on superficial metrics rather than real results, it can damage its reputation and credibility in the marketplace.