Show: Measuring what matters

(leonardo) #1

:wave: friends,

A couple of weeks ago I published a counter-intuitive post [0] where I explained my thoughts on the next generation of SaaS products. While today’s prevailing wisdom is maximizing user engagement, I argued that this might change very soon and for a lot of SaaS products, engagement/usage will be a lagging metric.
Today I published a new essay: “Finding Metrics That Matter” [1] where I explained why when a measure becomes a target, it ceases to be a good measure

In the era of SaaS and digital products, our strongest convictions are powerfully swayed by what other businesses are doing. Their core metrics become our core metrics, their best practices become our best practices, and their benchmarks for success become ours.

We see this happening when businesses with different products, different value chains, and different core values level out on the same metrics and, even worse, optimize for those same metrics. These bad habits make businesses think of their products in the exact same way, and it pushes the proliferation of “me-too” strategies.
In the post, I argued some of the metrics we look at today (pageviews, time spent on pg, open/click rates, etc.) don’t make sense and in most contexts and most of the times, they’re not good predictors of success.

Would love to get your feedback and your opinion on the topic.