Your traffic is up 300%, but revenue is flat. The problem? You're tracking vanity metrics that don't pay the bills. Here's how to focus on metrics that matter.

Why "Impressions" Don't Pay the Bills

Vanity metrics make you feel good but don't drive decisions. Here's why they're dangerous:

Common Vanity Metrics

Pageviews: High traffic doesn't mean high revenue
Impressions: Your ad was shown, but did anyone care?
Social media followers: Quantity ≠ quality
Email opens: Opens don't equal engagement (thanks, Apple MPP)
Time on site: Maybe they're just lost?

The Vanity Metric Trap:

You celebrate 10,000 pageviews, but if only 10 convert, you have a 0.1% conversion rate. That's not success—that's a leaky funnel.

The Metrics That Actually Matter (CAC, LTV, Pipeline)

Revenue metrics tell you if your marketing is working. Track these:

1. Customer Acquisition Cost (CAC)

Formula: Total Marketing Spend / Customers Acquired

This tells you how much it costs to get a customer. Lower is better, but only if quality stays high.

2. Lifetime Value (LTV)

Formula: Average Revenue Per Customer × Average Customer Lifespan

This tells you how much a customer is worth over time. You want LTV:CAC ratio of 3:1 or higher.

3. Marketing Originated Revenue

Revenue from customers who first touched marketing (not direct sales). This proves marketing's impact.

4. Pipeline Velocity

Formula: (Number of Opportunities × Average Deal Size × Win Rate) / Sales Cycle Length

How fast deals move through your pipeline. Faster = better cash flow.

5. Conversion Rate by Stage

Track conversion at each funnel stage:

Visitor → Lead: Target 2-5%
Lead → MQL: Target 20-30%
MQL → SQL: Target 20-30%
SQL → Customer: Target 20-30%

How to Train Your Board/Boss to Ignore Vanity Metrics

Executives love big numbers. Here's how to redirect their attention:

1. Start with Revenue

Always lead with revenue metrics:

"We generated $500K in marketing-originated revenue this quarter"
"Our CAC decreased 20% while maintaining quality"
"Pipeline velocity increased 15%, meaning faster closes"

2. Connect Vanity Metrics to Revenue

If they ask about traffic, show the connection:

"Traffic increased 50%, which led to 25% more leads, resulting in $100K more revenue"
Show the funnel: Traffic → Leads → Customers → Revenue

3. Use Visual Dashboards

Create dashboards that highlight revenue metrics:

Big numbers: Revenue, Pipeline, Customers
Small numbers: Traffic, impressions (context only)
Trends: Show growth in revenue metrics over time

Setting Up Revenue-Based Reporting

Here's how to structure your reports:

Executive Summary (Top of Report)

Marketing Originated Revenue (MOR)
Customer Acquisition Cost (CAC)
Pipeline Created
ROI: (MOR - Marketing Spend) / Marketing Spend

Funnel Metrics (Middle Section)

Leads generated (with quality breakdown)
MQL to SQL conversion rate
SQL to Customer conversion rate
Average deal size

Channel Performance (Bottom Section)

Revenue by channel (not just leads)
CAC by channel
ROI by channel

The Dashboard of Truth

Create a single dashboard everyone uses:

Key Metrics to Display

Revenue (Big, Top Center): Marketing Originated Revenue this month
Pipeline (Right): Pipeline created and velocity
CAC (Left): Customer Acquisition Cost trend
Conversion Funnel (Bottom): Visual funnel with conversion rates
Channel ROI (Side): Which channels drive revenue

What NOT to Display Prominently

Pageviews (unless connected to revenue)
Impressions (unless showing ROI)
Social followers (unless they convert)
Email opens (broken metric due to MPP)

Conclusion

Vanity metrics feel good but don't drive decisions. Focus on revenue metrics: CAC, LTV, pipeline, and conversion rates. Train your stakeholders to care about revenue, not traffic. Build dashboards that highlight what matters. The result? Marketing that's accountable to revenue, not just activity.