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The Tempting Trap of Vanity Metrics in SaaS

  • Vanity metrics are measurements that seem impressive but do not necessarily correlate with genuine business performance.
  • They often emphasize quantity over quality, providing little actionable insight.
  • Vanity metrics can create a distorted view of reality, obscuring critical issues and misallocating resources.
  • To measure success, SaaS businesses should focus on actionable metrics like CAC, CLTV, customer churn rate, NPS, and MRR.

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