Are You Measuring What Matters? Rethink Your Site Metrics

Introduction

Website metrics provide valuable insights that can make or break a business. Common default metrics like pageviews, bounce rate, and traffic source are easily available but have limitations in terms of aligning with goals. This article will discuss why metrics should tie directly to your business objectives and key performance indicators (KPIs). We'll cover how to audit current metrics, define new metrics tailored to your goals, track and collect the right data, and continuously optimize. With the right metrics framework, you can make data-driven decisions to improve outcomes.

Pageviews, bounce rate, and other vanity metrics are easy to track but don't reflect true success. For example, high traffic means little if visitors leave quickly without converting. This article will demonstrate how to go beyond surface-level stats to metrics that provide actionable insights. By tailoring metrics to your business model, audience, and goals you can accurately gauge performance.

Evaluate Your Current Metrics

Start by auditing your existing metrics to determine if they offer meaningful insights or are simply vanity metrics. Identify sites, campaigns, and tactics where metrics may be inflated or not aligned with overarching goals. Analyze which metrics directly influence customer acquisition, retention, and other key outcomes.

Consider phasing out metrics that seem positive but have become outdated, redundant, or unactionable. For example, time on page can be misleading if users have the page open but are not engaged. Use tools like Google Analytics to view metric trends and patterns over time. This evaluation will reveal problem areas and opportunities.

Common Default Metrics to Reconsider

• Pageviews - Focus on engaged time on page rather than just views, which can be inflated through tactics like popups.

• Bounce rate - Understand exit intent and whether a high bounce rate is actually problematic for your business model.

• Traffic source - Evaluate quality not just quantity of traffic. 10,000 disengaged visitors from a new channel aren't worthwhile.

• Conversion rate - Expand beyond purchases to include micro-conversions like email signup, content download, etc.

• Social followers - Prioritize engagement over vanity stats like follower counts, which can be gamed through bots.

Identify Your Core Metrics

Determine 3-5 metrics that best reflect your most important goals. Consider metrics across the customer lifecycle including acquisition, activation, retention, and revenue. Include a mix of quantitative and qualitative metrics. Build metrics focused on overall customer experience. Consult with leadership, team members across departments, and customers. Defining this focused set of metrics aligns tracking and optimization with what truly matters.

Define Metrics Aligned to Goals

With your target business objectives and KPIs defined, determine metrics that directly influence each one. Avoid vanity metrics that seem positive but don't actually drive outcomes. For example, focusing on website visitors rather than customer lifetime value. Build metrics focused on measuring outcomes, not activities. Include both macro conversion goals and micro-conversion steps in your framework.

Business Goal Examples

• Increased sales or conversions for an e-commerce site

• Higher customer retention rate for a SaaS product

• Improved Net Promoter Score (NPS) for better customer satisfaction

• Greater brand awareness through increased social media followers

• Shorter sales cycle for an account-based marketing approach

Potential Aligned Metrics

• E-commerce conversion rate

• Customer churn rate

• Net Promoter Score (NPS) surveys

• Social media engagement rate

• Sales cycle length from prospect to close

Collect and Track New Metrics

Determine measurement and data collection methods for new metrics not previously tracked. Set up tracking through analytics platforms like Google Analytics. Display metrics visually with dashboard tools like Klipfolio. Automate where possible with scripts, APIs, etc. Establish processes to regularly review and analyze metrics.

Qualitative Metrics Tips

• Survey customers for feedback with a tool like Qualtrics

• Monitor social media and reviews

• Analyze customer conversations and interviews

• Create customer panels or focus groups

• Have team members share customer anecdotes

Optimization Opportunities

• A/B test variations using Optimizely to lift key metrics

• Try changes to copy, offers, UX flows, etc.

• Experiment with segmentation and personalization

• Iterate creatives, messaging, and campaigns

• Explore expanding to new channels

Continuously Optimize and Evolve

Set targets and benchmarks for metrics based on past data. Monitor dashboards regularly and document trends. Share insights cross-functionally within the organization. Re-evaluate metrics and refine as business needs change. Maintain an optimization roadmap to drive metrics upward.

Key Takeaways

• Audit current metrics to identify vanity metrics that provide little value

• Survey customers and track qualitative metrics like NPS

• Set up A/B testing to optimize flows and lift conversion rates

• Continuously refine metrics as your business goals evolve

• Having the right metrics enables data-driven decisions

Conclusion

Rather than relying on generic default web metrics, smart businesses tailor their analytics framework to align with goals. By auditing current metrics, defining new goal-focused metrics, tracking the right data, and optimizing continuously you gain unique insights to make informed decisions. With a targeted set of metrics connected to business objectives you can accurately gauge performance and growth. As goals change, so should your metrics. With the guidance provided throughout this article, you now have the keys to unlock success through metrics that truly matter.

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