About the Guide
Day 1: Intro to Growth
Day 2: Customers
Day 3: Data
Day 4: Metrics
Day 5: Analytics
Day 6: Analysis
Day 7: Growth Priorities
Day 8: Funnels
Day 9: Psychology
Day 10: Conversion Rate Optimization
Day 11: Copywriting
Day 12: Landing Pages
Day 13: Acquiring Customers
Day 14: Pricing
Day 15: Trials and Plans
Day 16: Onboarding
Day 17: Retaining Customers
Day 18: Upgrading Customers
Day 19: Referral
Day 20: Keep Learning
Day 4: Metrics
Metrics are the specific data points or combinations of data points that give insight into the health of your business. This is why getting your metrics right is so essential to your work on growth.
List out what product metrics you are tracking right now. Keep this for further actions.
It’s easy to focus on metrics that have little value to your business, especially when they seem impressive. These are called vanity metrics and they are numbers that look good on the surface, but don't have much bearing on the the key parts of your business.
Any time spent with a vanity metric is a waste, but it becomes a lot more dangerous when important decisions are being made off that metric.
Companies often focus on vanity metrics because they can much better than metrics more closely related to their health.
One business model’s vanity metrics may not be another’s. For example, while page views is a vanity metric for SaaS companies, it can be an important metric for companies that rely on advertising revenue.
Go over the list of metrics you made earlier and look for vanity metrics. For SaaS, these will typically be weak acquisition metrics.
Breaking Down Your Metrics
Metrics can and should be split into smaller groups to learn more about those groups. Breaking your metrics down opens up insights that were unavailable before.
For example, you might be measuring how much each new customer costs to bring in. Your customers will come in all types of channels - one sees a retweet of a blog post, another clicks on your google search ad.
You want to know the most profitable channel to pour more resources into and the least profitable so you can stop using it.
There are many ways to split up your metrics. It depends on which area of stage of your relationship with customers you're working on.
Common ways to break down metrics include: the week a customer signed up for your product, the way the customer found your product (whether through a blog post, social media site or ad) or by acquisition campaign.
Just like it’s easy to get overwhelmed with too many metrics, it’s also easy to over segment your metrics. Keep it simple in the beginning.
Look at your list of metrics - what metrics should you break down?
There are hundreds if not thousands of metrics you could track with your product. How often a customer returns to your product, how many people visit a certain page on your site, what marketing tactic brings in the most customers, and more.
To keep from being overwhelmed you have to prioritize a small number of metrics. For example, after reviewing your product for growth opportunities, you may determine that while you’re bringing in customers, you’re not keeping them.
With a goal of keeping more customers, you can then narrow down the list of metrics to those that directly affect that goal.
Keeping highly focused on your metrics translates to better focus across the rest of your business.
Your resources determine how many metrics you can track. You’ll want to focus on a small subset of what’s available.
Take a look at your list of metrics and determine the top three.