Lean Startup Metrics: Myths

The lean startup movement has become a popular way to create new businesses. It is an iterative process that can be summed up as “build, measure and learn.” Entrepreneurs have been using the metrics from this methodology for years now, but some of them may not be measuring what they think they are. In this blog post we will discuss some of the most common misconceptions about metrics in the lean startup methodology and how you can avoid making these mistakes when creating your own business plan!

Lean Startup Metrics

Lean startup metrics can be defined as the quantitative measurements that are taken when a business starts up, it is an iterative process. Statistics and the data collected from these different types of metrics can be used to make decisions and it is important to know the difference between vanity metrics and true helpful measurement.

Lean Startup Metrics – Myths

Vanity metrics lean startup:

  • The most important metric for a startup is the number of users. It may seem that way at first, but this can be misleading because it doesn’t take into account how engaged your users are with you product or service. It’s not uncommon to have many people sign up so they get an early version of what you’re working on – just out of curiosity. When we focus only on the numbers without looking deeper, entrepreneurs often make decisions based solely on vanity metrics which will ultimately lead them in the wrong direction and hinder their growth potential as a business owner!
  • Vanity Metrics like page views and “Likes” should be used to determine success. The problem here lies with how these metrics can be misleading. Let’s say a person clicks on your page fifty times in one day and barely interacts with anything else – they’re not considered an engaged user and you should start looking at more critical analytics, like time spent on site or other engagement indicators that are related to the type of business you have.
  • A high number for “Likes” is always good! This may seem true but if their interactions don’t lead to anything meaningful then it doesn’t matter how many Likes there are – what matters is whether those people actually care about your product or service enough to engage with it long term. If someone just likes something without really being interested in it (or liking everything), this could also be a sign that they are not qualified to be part of your target audience.
  • You should use the “A/B” testing approach in order to determine which version is better for your product or service – but beware, this can also lead you astray! A/B tests often focus too much on numbers and don’t take into account qualitative data like customer feedback or what’s trending right now. This means it may not accurately predict how customers will react to the new feature when released. There are many other factors involved with something as complex as developing software that makes these types of decisions tricky so always remember that less biased measurements could make a difference in terms of growth potential.”

Lean startup metrics can be defined as the quantitative measurements that are taken when a business starts up, it is an iterative process. Statistics and the data collected from these different types of metrics can be used to make decisions and it is important to know the difference between vanity metrics and true helpful measurement.