Vanity metrics and Real metrics.

Vanity metrics are like numbers of registered users, count of site visitors, number of downloads; these metrics can easily be manipulated. These metrics don’t tell anything about real growth and cannot be relied on, they are just numbers which are easy to achieve and easy to change but don’t measure real growth. Real metrics is something which measures the value of the product to the customer and how many customers discover this fact, the metrics like

1. Monthly active users which show how many users find product useful and use it at least once a month
2. Churn rate over a period of time, tells you how many percentages of users moving away from the product, means they don’t get value from the product
3. Cost to acquire customer(CAC) and customer lifetime value(LTV), these two metrics make more sense when put together as CAC must always be less than LTV otherwise you will lose money with every customer you acquire, till the cost to acquire a customer is lower than the profit you are going to make from the customer, you can spend tons of money on each dollar spent on customer acquisition return a dollar + x amount, so you are making money with every

To find out your real metrics, start monitoring them!

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