Why people keep watching them
- numbers that go up are pleasant to show
- inertia: it has always been this way
- platforms show exactly these metrics by default
- nobody asks what they are for
The eight-question test
Count how many answers come back «yes».
- Is the metric tied to key outcomes: revenue, profit, retention?
- Does it measure efficiency rather than volume alone?
- Can you influence it directly or through drivers?
- Will a change in it change your decisions?
- Is the definition exact and the same for everyone?
- Is it consistent across segments?
- Is it stable over time rather than a short spike?
- Is there something to compare it with: earlier periods, cohorts?
up to 2 «yes»vanity metric: redefine it or drop it
3-4diagnostic, cannot be set as a target
5-6supporting
7-8critical
The usual vanity metrics in sales
- call count with no regard for call length or outcome
- enquiry count with no qualification
- the value of invoices issued instead of money received
- the number of records in the CRM
The most expensive one is the value of orders booked. It rises whenever the team is busy and tells you nothing about whether the money arrived. We have seen months where bookings were a third higher and less cash came in.
How to cure a metric instead of throwing it out
- Work out what it could be connected to.
- Draw the connection and name its direction: direct or inverse.
- Check on your own data whether the two move together.
- Assign a role: driver, diagnostic, or outcome metric.
- Carry the chain further, to sales, retention or cost.