Vanity vs actionable metrics

Vanity metrics make products look good in presentations but fail to guide meaningful decisions about product development. These surface-level numbers, like total page views or registered users, can create an illusion of growth while masking deeper problems. They're easy to track but hard to act on, often leading teams to celebrate hollow victories.^[1]

Actionable metrics directly connect to user behavior and business outcomes, enabling teams to make informed product decisions. These metrics answer specific questions about user engagement, retention, and product value. For example, instead of total signups, measuring the percentage of new users who complete key actions within their first week provides clear insight into product adoption.

The key to choosing effective metrics lies in their ability to drive action. Good metrics should help teams identify problems, validate solutions, and measure genuine product success. They create a clear connection between user behavior and business goals, making it obvious when changes are needed and whether improvements are working. For each metric you track, ask yourself: "If this number changes significantly, do I know exactly what action to take?”