Lloyd Tabb, founder of the analytics platform Looker, recently shared a helpful distinction in an interview with First Round Review: He divides metrics into “vanity” and “clarity”. A “vanity” metric is impressive but uninformative – for example, the number of new users per day. A “clarity” metric, by contrast, measures what becomes of those users – how often they come back, whether they become paying customers, and what drives their decisions. Tabb’s interview includes extensive detail and examples from various industries. The overall theme: Use data to see what’s driving users away and what’s keeping them engaged. Find metrics that predict future results rather than simply measure the past.
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