We’re about to say some bold things about metrics in this post. Things that challenge long-held beliefs about which metrics are actually important. Things that would require the SaaS industry to rewrite a vocabulary we’ve all become comfortable with. We’re about to talk about the long-awaited death of vanity metrics.
What are vanity metrics?
Vanity metrics are metrics that work to validate the existence of certain roles within an organization. They’re pretty-on-paper, feel-good metrics that will not directly influence revenue. For example, open rates, social media followers, or webinar attendees.
Sure, they show a level of interest in your product, but when your ultimate goal is revenue, these metrics all fall short. The fact is, no matter how many people open your email, the only number that matters is the revenue number.
Let’s Talk SaaS Metrics
In a perfect world, your sales and marketing teams would be collaborating on things like account selection and lead scoring. That way, any leads moving into the sales funnel would be qualified by definition.
However, this kind of success won’t happen overnight. Keep your momentum-based KPIs on the back burner, to make sure you’re moving in the right direction.