Metadata
- Author: Brian Balfour
- Full Title:: Common Mistakes In Defining Metrics
- Category:: 🗞️Articles
- Document Tags:: Metrics frameworks, Metrics layer,
- URL:: https://brianbalfour.com/quick-takes/common-mistakes-defining-metrics
- Finished date:: 2024-04-24
Highlights
You need to define the strategy before you define your metrics. What are the key hypotheses of the strategy? What metrics would indicate those hypotheses are true? (View Highlight)
Outputs vs Inputs ℹ️ Most metrics like a retention metric or revenue metric are output metrics. These are metrics you should should monitor. Giving output metrics to teams as goals can be dangerous. They need to know how to break them down into input metrics to make them actionable. When this doesn’t happen it leads to teams thrashing between things. (View Highlight)
Usage First not Revenue First 💸 This is the most common version of outputs vs inputs. Usage creates revenue, revenue does not create usage. As a result the most important metrics in terms of creating growth are not your revenue metrics, they are your usage metrics. (View Highlight)