How Retailers Can Leverage Vanity Metrics vs. Actionable Metrics

Page views, likes, full shopping carts … we all love numbers that prove our website is popular. The problem is that much of this data can be classified as vanity metrics. Unfortunately, vanity metrics don't provide real insight into the success of your website. For better analysis, turn to actionable metrics instead.

Actionable metrics are numbers that help you understand why customers are behaving the way they do. Recent research shows that only 44 percent of marketers use analytics to make decisions. Use actionable metrics to analyze past customer behavior and to shape how future customers interact with your website.

Why We Stop at Vanity Metrics
It's easier — much easier — to collect only vanity metrics. Most marketing teams are limited, so data collection can't be too complicated. The problem is this: data requires analysis. Once you have your numbers, it takes time and careful thought to understand why the data says what it does.

Counting page views is faster than analyzing customer paths, but which do you think is more fruitful? Actionable metrics lead to, well, action. Lift the hood in Google Analytics. With a little extra effort, you'll be surprised at how much you can do.

How to Tell if Metrics Are Actionable
If numbers make your head hurt, you may want to believe that all data is equally valuable. However, some data is more actionable than others. It's important to spend your time on the numbers that will pay off the most. For example, only one-third of marketers track return on investment, and that might be the most important metric of all!

A great way to determine if your metrics are valuable is to ask, "Do they answer the ‘So what?’ question?" Social media followers or blog readers are nice to have, but so what? Knowing how they impact revenue is better. Collecting general sources of traffic is helpful; tracking individual sources using UTMs is better.

Leverage Your Tools and Reports
Google Analytics offers a robust set of tools, including reporting. However, only 48 percent of marketers customize reports in Google Analytics. Create reports that show you the unique data your company needs. Analyze traffic and behavior to show where customers come from and what they do when they get to your website. This data can help you retarget customers who have left their shopping cart full.

Attribution models, which only 10 percent of marketers use, can help you understand which sources lead to conversions. Keep in mind that most customers convert on their second, third or fourth visit. If you gain a better understanding of how your customers interact with your traffic sources, you'll be able to predict which initiatives will be successful in the future.

Where Do I Find the Time?
Experts recommend that two-thirds of an analyst's time should be spent on analysis. That might sound like a dream, since most companies don't even have their very own analysts! Instead, teams often consist of a handful of people knocking out campaigns, social media posts, PR, blogs, high-value content and more.

No wonder it's such a challenge to use data effectively. Who has time for in-depth analytics? Data analysis pays off in the long run, however. The best marketers take the time to break down the numbers before, during and after an initiative. Build in extra time to collect, analyze and act on data, otherwise you might be wasting efforts or money.

Start Marketing With Actionable Data
Analytics are great for collecting information about your website, but be sure to collect the right data. Don't be intimidated by analytics tools like Google Analytics. Your effort can pay off in time saved, better predictions and stronger ROI. When you move past the vanity metrics, you'll find that you rely less on intuition and more on real data.

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Chris Lucas is the vice president of business development at Formstack, an online form builder that enables users to create any type of online form, including surveys, contact forms, event registrations and order forms.