Vanity Metrics Quotes

Vanity metrics wreak havoc because they prey on a weakness of the human mind.

The number of books completed is a vanity metric. As you know more, you leave more books unfinished.

French fries are America’s vegetable of choice, and the average American eats the fat equivalent of one whole stick of butter each day. This has forced airlines to add more fuel to planes to compensate for heavier passengers, manufacturers increase the size of car seats for children while selling seat belt extenders for adults, and curved shower curtain rods are creating space for those needing extra room while bathing. There is no way one size can possibly fit all. Time reports, “As Americans have grown physically larger, brands have shifted their metrics to make shoppers feel skinnier—so much so that a women’s size 12 in 1958 is now a size 6.” Disguising this doubling in size is called vanity sizing but has been derided as “insanity sizing”.

Reading many books is the most socially accepted vanity metric for adults. You get zero kudos for reading 100 books a year. You get massive kudos for learning efficiently and making interesting things

In my several years there, it was unusual to ever hear about an aggregate number—like total trips or total active riders—except as a big vanity milestone at a company all-hands. Those aggregate metrics were regarded as mostly meaningless. Instead, the discussion was always centered on the dynamics of each individual network, which could be nudged up or down independently of each other, with increased marketing budget, incentive spend for either drivers or riders, product improvements, or on-the-ground operational efforts.

Anti-Network Effects Hit the Google+ Launch A charismatic executive from one of the most powerful technology companies in the world introduces a new product at a conference. This time, it’s June 2011 at the Web 2.0 Summit, where Google vice president Vic Gundotra describes the future of social networking and launches Google+. This was Google’s ambitious strategy to counteract Facebook, which was nearing their IPO. To give their new networked product a leg up, as many companies do, it led with aggressive upsells from their core product. The Google.com homepage linked to Google+, and they also integrated it widely within YouTube, Photos, and the rest of the product ecosystem. This generated huge initial numbers—within months, the company announced it had signed up more than 90 million users. While this might superficially look like a large user base, it actually consisted of many weak networks that weren’t engaged, because most new users showed up and tried out the product as they read about it in the press, rather than hearing from their friends. The high churn in the product was covered up by the incredible fire hose of traffic that the rest of Google’s network generated. Even though it wasn’t working, the numbers kept going up. When unengaged users interact with a networked product that hasn’t yet gelled into a stable, atomic network, then they don’t end up pulling other users into the product. In a Wall Street Journal article by Amir Efrati, Google+ was described as a ghost town even while the executives touted large top-line numbers: To hear Google Inc. Chief Executive Larry Page tell it, Google+ has become a robust competitor in the social networking space, with 90 million users registering since its June launch. But those numbers mask what’s really going on at Google+. It turns out Google+ is a virtual ghost town compared with the site of rival Facebook Inc., which is preparing for a massive initial public offering. New data from research firm comScore Inc. shows that Google+ users are signing up—but then not doing much there. Visitors using personal computers spent an average of about three minutes a month on Google+ between September and January, versus six to seven hours on Facebook each month over the same period, according to comScore, which didn’t have data on mobile usage.86 The fate of Google+ was sealed in their go-to-market strategy. By launching big rather than focusing on small, atomic networks that could grow on their own, the teams fell victim to big vanity metrics. At its peak, Google+ claimed to have 300 million active users—by the top-line metrics, it was on its way to success. But network effects rely on the quality of the growth and not just its quantity

When examined through the lens of Meerkat’s Law and the central framework of this book, it is obvious why the resulting networks generated by big launches are weak. You’d rather have a smaller set of atomic networks that are denser and more engaged than a large number of networks that aren’t there. When a networked product depends on having other people in order to be useful, it’s better to ignore the top-line aggregate numbers. Instead, the quality of the traction can only be seen when you zoom all the way into the perspective of an individual user within the network. Does a new person who joins the product see value based on how many other users are already on it? You might as well ignore the aggregate numbers, and in particular the spike of users that a new product might see in its first days. As Eric Ries describes in his book The Lean Startup, these are “vanity metrics.” The numbers might make you feel good, especially when they are going up, but it doesn’t matter if you have a hundred million users if they are churning out at a high rate, due to a lack of other users engaging. When networks are built bottom-up, they are more likely to be densely interconnected, and thus healthier and more engaged. There are multiple reasons for this: A new product is often incubated within a subcommunity, whether that’s a college campus, San Francisco techies, gamers, or freelancers—as recent tech successes have shown. It will grow within this group before spreading into other verticals, allowing time for its developers to tune features like inviting or sharing, while honing the core value proposition. Once a new networked product is spreading via word of mouth, then each user is likely to know at least one other user already on the network. By the time it reaches the broader consciousness, it will be seen as a phenomenon, and top-down efforts can always be added on to scale a network that’s already big and engaged. If Big Bang Launches work so poorly in general, why do they work for Apple? This type of launch works for Apple because their core offerings can stand alone as premium, high-utility products that generally don’t need to construct new networks to function. At most, they tap into existing networks like email and SMS. Famously, Apple has not succeeded with social offerings like the now-defunct Game Center and Ping. The closest new networked product they’ve launched is arguably the App Store, but even that was initially not in Steve Jobs’s vision for the phone.87 Most important, though, you aren’t Apple. So don’t try to copy them without having their kinds of products.

Qualitative versus quantitative metrics Qualitative metrics are unstructured, anecdotal, revealing, and hard to aggregate; quantitative metrics involve numbers and statistics, and provide hard numbers but less insight. Vanity versus actionable metrics

Some unfortunate companies wind up following this strategy inadvertently. Because they are using vanity metrics and traditional accounting, they think they are making progress when they see their numbers growing. They falsely believe they are making their product better when in fact they are having no impact on customer behavior. The growth is all coming from an engine of growth that is working—running efficiently to bring in new customers—not from improvements driven by product development. Thus, when the growth suddenly slows, it provokes a crisis.

A vanity metric measures activity, instead of customer engagement results.

Many companies claim they’re data-driven. Unfortunately, while they embrace the data part of that mantra, few focus on the second word: driven. If you have a piece of data on which you cannot act, it’s a vanity metric.

Watch out for what Eric Ries dubbed “vanity metrics”—numbers that present a rosy picture of the business but don’t actually reflect its key drivers of growth. Note that one company’s vanity metric might be another’s key driver.

I call the traditional numbers used to judge startups “vanity metrics,” and innovation accounting requires us to avoid the temptation to use them.

For a report to be considered actionable, it must demonstrate clear cause and effect. Otherwise, it is a vanity metric. The reports that Grockit’s team began to use to judge their learning milestones made it extremely clear what actions would be necessary to replicate the results.

Building a loyal following matters more than achieving bestseller status, winning literary awards, or chasing other vanity metrics. True fans are invaluable. They’re not just a means to financial independence—they’re the reason you write.

What makes a good metric What vanity metrics are and how to avoid them The difference between qualitative and quantitative metrics, between exploratory and reporting metrics, between leading and lagging metrics, and between correlated and causal metrics What A/B testing is, and why multivariate testing is more common The difference between segments and cohorts

We call them vanity metrics, the numbers that make you feel good but seriously mislead. Avoiding them requires a whole new accounting discipline, which I call “innovation accounting.

Being Overconfident And Obsessed With Vanity Metrics Is The Recipe For Disaster

vanity metrics: the total number of customers and the total number of questions answered.

Innovation accounting will not work if a startup is being misled by these kinds of vanity metrics: gross number of customers and so on. The alternative is the kind of metrics we use to judge our business and our learning milestones, what I call actionable metrics.

Vanity metrics wreak havoc because they prey on a weakness of the human mind. In my experience, when the numbers go up, people think the improvement was caused by their actions, by whatever they were working on at the time. That is why it’s so common to have a meeting in which marketing thinks the numbers went up because of a new PR or marketing effort and engineering thinks the better numbers are the result of the new features it added.

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