Benefit-Driven Metrics: Measure the lives you save, not the life preservers you sell

Special note for ad-driven startups
Now ad-supported startups have a particularly interesting issue in this, because I keep using the words “benefits” and “customers” and perhaps it’d be easy to think this refers to the users of the product. But maybe not, as I’ve outlined before in Your ad-supported Web 2.0 site is actually a B2B enterprise in disguise. The reason is that your customer may actually be the advertiser on the site, not your user!

And in fact, if you overfocus on pleasing your users to the detriment of your advertiser customers, which is very easy – then that leads to very bad things.

Start this benefits-driven approach now, not later, so you can learn the right things
Finally, I want to emphasize that I believe it’s important to start thinking about these benefit-driven metrics from the beginning of your business, not later. The reason is that every learning that a startup makes is often hugely applicable to a specific context, but not at all applicable to other variations.

If you’re going to start a website that churns users like crazy but hits massive user goals, you will build an entire organization to optimize for those metrics. And once you’ve gone far on this, it’s not clear that you’ll have the DNA, the technology, the ideas, or the willpower to execute in a different direction.


http://andrewchenblog.com

Measuring value created rather than optimizing for yourself
In my last blog post, I talked about the idea that value creation generates revenue, traffic, and other metrics, not the other way around. This is a particularly interesting idea to implement because it goes against much of the standard analytics reports that are out there.

The reason is that ultimately, most metrics tend to focus inwards, on self-interested gain, rather than outwards on the value you’re creating for your customers. Let’s take a couple examples of inward-focused metrics that people often cite:

  • account registrations
  • pageviews
  • unique visitors per month
  • revenues

I’m sure you measure many of the above, as I do as well. It’s OK to measure this stuff, but if you start to optimize for it, you are starting to focus on the business of value extraction, not value creation. Leer más “Benefit-Driven Metrics: Measure the lives you save, not the life preservers you sell”

Why You Ought to Throw Away Your Vanity Metrics for These 5 Customer Metrics

Have you ever logged into your analytics account and noticed how your traffic and pageviews are up? And when you notice that your pageviews have gone up, you probably get excited and try to figure out what caused it to go up, right?

But when you dig a bit deeper and start to analyze the impact of those increased pageviews, you probably notice that your revenue hasn’t really gone up at all.


http://blog.kissmetrics.com/throw-away-vanity-metrics/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+KISSmetrics+%28KISSmetrics+Marketing+Blog%29
KISSmetrics Sticker
Have you ever logged into your analytics account and noticed how your traffic and pageviews are up? And when you notice that your pageviews have gone up, you probably get excited and try to figure out what caused it to go up, right?

But when you dig a bit deeper and start to analyze the impact of those increased pageviews, you probably notice that your revenue hasn’t really gone up at all. Leer más “Why You Ought to Throw Away Your Vanity Metrics for These 5 Customer Metrics”