Metrics That Matter & Why Your Dashboard Might Be Lying To You
We #Startups love our metrics.
🚀 Traction slides.
đź“Š Dashboards.
🔥 Heatmaps.
We can't get enough of them. But loving metrics isn’t the same as understanding what matters. And here’s the uncomfortable truth: Vanity metrics don’t even look impressive to the folks they’re meant to impress.
Investors, accelerators, and pitch judges see right through them.
They’ve seen the download spikes. They’ve heard the “we hit 10k signups” pitch. They know how easy it is to inflate a number and how hard it is to build a business.
So what does impress them?
Sensitivity Is the KPI Superpower
đź’ˇ True KPIs make you sweat when they wobble.
đź’ˇ The difference is sensitivity.
A good KPI doesn’t just look good on a slide. It tells you when something’s off—before a board member does. It’s a signal, not just a snapshot.
Impressions, downloads, and signups are fine. But activation, retention, ROAS, and cash conversion cycles? Those move the business.
They’re sensitive to product-market fit. They’re sensitive to pricing strategy. They’re sensitive to whether your business is actually working.
If your startup isn’t sensitive to it, you’re flattering your business—not measuring it.
The Dashboard Whisper Test
The best dashboards don’t scream: LOOK AT ME.
They whisper: Something’s shifting.
They’re built to detect early tremors, not just celebrate late-stage wins. They help you course-correct before the market does it for you.
Here’s a quick litmus test:
If your dashboard looks great but you’re still unsure what’s working, it’s probably noise.
If your dashboard makes you nervous when a number dips, it’s probably signal.
Signal vs. Noise: A Founder’s Guide
Let’s break it down:
Impressions
Ruling: Vanity Metric
Rationale: Doesn’t reflect intent or conversion
Downloads
Ruling: Vanity-ish Metric
Rationale: Only matters if followed by activation
Signups
Ruling: Vanity-ish
Rationale: Can be gamed—needs context (source, quality)
Activation Rate
Ruling: KPI
Rationale: Shows product value is being realized
Retention Rate
Ruling: KPI
Rationale: Indicates long-term value and stickiness
ROAS
Ruling: KPI
Rationale: Ties spend to revenue—critical for scaling
Cash Conversion
Ruling: KPI
Rationale: Reveals operational efficiency and liquidity health
Metrics aren’t just numbers. They’re stories. And the best stories have tension, stakes, and resolution.
Founder-Proof Metrics: What to Track and Why
If you want to build dashboards that actually help you lead, consider prioritizing:
Activation: Are users doing the thing your product was built for?
Retention: Are they coming back? If not, why not?
Revenue per user: Are you monetizing effectively?
Cash conversion cycle: How fast does money move through your system?
Churn: Who’s leaving, and what does that say about your value prop?
These metrics don’t just tell you what happened. They tell you what’s about to happen.
And that’s the difference between a founder who reacts and a founder who leads.
Building Dashboards That Actually Work
When you’re designing your dashboard, ask:
Does this metric help me make a decision?
Will I change my behavior if this number moves?
Is this metric tied to a core business outcome?
If the answer is no, it’s probably decoration. Dashboards should be decision tools, not dopamine hits. They should help you prioritize, not just perform.
And most importantly, they should be founder-proof: Built to survive investor scrutiny, team debates, and your own second-guessing.
Final Thought: Metrics as Mirrors
Metrics aren’t just for investors. They’re for you.
They reflect your strategy, your execution, and your blind spots. They show you where you’re strong—and where you’re bluffing.
So build dashboards that whisper. Track metrics that matter. And remember: sensitivity beats vanity every time.
If you’re into founder-proof metrics, signal vs. noise, and commercial strategy that actually moves the needle—this corner of the internet might just be worth bookmarking.