As a marketer, you have more ways to connect and engage with your customers than ever before. All of these interactions across a wide variety of channels translate to being flooded with data about your customers.
With all of this data available, only a small percentage of companies have tapped into its potential to move their businesses forward. Why? Because not every type of metric is meaningful.
Only 14% of marketers feel confident that they leverage their consumer, media, and transaction data effectively
Which metrics are actionable and worthy of your attention? And which are considered “vanity metrics”? Here are three ways to recognize the difference:
- Are you more concerned with quantity (number of impressions, page views, clicks, downloads, etc.) than quality (engagement, sharing content, buying from you)?
- Are you measuring marketing and campaign performance?
- Is your company concerned with awareness, acquisition, and marketing return on investment?
If you answered “yes” to the first question, then your company may suffer from funnel vision – where priorities are focused on volume growth, channel metrics, and aggregate analysis instead of long-term profitability.
You’re well aware of the 80:20 rule, or Pareto principle, as it applies to marketing. That is, 80% of profits come from 20% of your existing customers. When maximizing lifetime customer value is a top priority, your company will be positioned to thrive in this age of customer.
Learn more about distinguishing the difference between vanity and actionable metrics in our latest guide.
