Tag: Business

Vanity Metrics: What They Are and Why You Should Avoid Them

Prasad AjinkyaLeave a comment
Futility of vanity metrics

As a marketer, you probably use various metrics to measure and evaluate your marketing performance and success. Metrics such as website traffic, social media followers, email subscribers, and video views can help you understand how your marketing efforts are reaching and engaging your target audience. However, not all metrics are equally useful and meaningful. Some metrics may look impressive and flattering, but they may not actually reflect the true value and impact of your marketing activities or that of your business. These metrics are known as vanity metrics.

What are vanity metrics?

Vanity metrics are metrics that make you look good to others, but do not help you understand your own performance in a way that informs future strategies. These metrics are often easy to measure and manipulate, but they do not indicate any real return on investment (ROI) or customer behavior. Examples of vanity metrics include:

  • Website traffic: The number of visitors or sessions on your website may seem like an important indicator of your website’s popularity and reach, but it does not tell you anything about the quality and relevance of your traffic, or how your traffic converts into leads or customers.
  • Social media followers: The number of followers or fans on your social media accounts may seem like a measure of your social media influence and authority, but it does not tell you anything about the engagement and loyalty of your followers, or how your followers interact with your brand or products.
  • Email subscribers: The number of subscribers on your email list may seem like a measure of your email marketing potential and growth, but it does not tell you anything about the deliverability and open rate of your emails, or how your subscribers respond to your email campaigns.
  • Video views: The number of views on your videos may seem like a measure of your video marketing reach and impact, but it does not tell you anything about the retention and completion rate of your videos, or how your viewers take action after watching your videos.

Why you should avoid vanity metrics

Vanity metrics may be tempting and satisfying to track and report, but they can be misleading and harmful for your marketing strategy and goals. Here are some reasons why you should avoid vanity metrics:

  • They do not help you make data-driven decisions: Vanity metrics do not provide any actionable insights or feedback that can help you improve your marketing performance and outcomes. They do not tell you what works and what does not work, what to do more of and what to do less of, or what to change and what to keep. They do not help you optimize your marketing tactics and channels, or allocate your marketing resources and budget effectively.
  • They do not help you align with your business objectives: Vanity metrics do not align with your business objectives, such as increasing sales, revenue, or profit. They do not show you how your marketing activities contribute to your bottom line, or how they generate value for your business and your customers. They do not help you demonstrate your marketing ROI, or justify your marketing spend and efforts.
  • They do not help you build trust and credibility: Vanity metrics do not build trust and credibility with your stakeholders, such as your management, your team, your partners, or your customers. They do not reflect the true quality and impact of your marketing work, or the real needs and preferences of your target audience. They may even damage your reputation and credibility, if your stakeholders discover that your metrics are inflated, manipulated, or irrelevant.
  • They can be open to subjective interpretations: Vanity metrics can be interpreted in a variety of methods, thus creating confusion instead of giving a clear direction towards efforts.

How to avoid vanity metrics

To avoid vanity metrics, you need to focus on metrics that are relevant, meaningful, and actionable for your marketing strategy and goals. These metrics are often called actionable metrics, as they help you take action and make decisions that improve your marketing performance and success. Here are some tips on how to avoid vanity metrics and use actionable metrics instead:

  • Define your marketing goals and objectives: Before you start measuring and evaluating your marketing performance, you need to define your marketing goals and objectives, and align them with your business goals and objectives. Your marketing goals and objectives should be SMART: specific, measurable, achievable, relevant, and time-bound. For example, instead of having a vague goal of increasing website traffic, you can have a SMART goal of increasing website traffic by 10% in the next quarter, by targeting a specific segment of your audience, using a specific channel or tactic, and measuring a specific metric or outcome.
  • Choose your key performance indicators (KPIs): Based on your marketing goals and objectives, you need to choose your key performance indicators (KPIs), which are the metrics that indicate whether you are achieving your goals and objectives, or not. Your KPIs should be relevant, meaningful, and actionable for your marketing strategy and goals. For example, instead of using website traffic as a KPI, you can use website conversion rate, which measures the percentage of your website visitors who take a desired action, such as signing up for a newsletter, downloading a white paper, or making a purchase.
  • Track and analyze your data: Once you have chosen your KPIs, you need to track and analyze your data, using various tools and methods, such as Google Analytics, dashboards, reports, and experiments. You need to track and analyze your data regularly and consistently, to monitor your marketing performance and progress, and to identify any trends, patterns, or anomalies. You also need to track and analyze your data in context, by comparing it with your benchmarks, targets, or competitors, and by segmenting it by various dimensions, such as source, channel, device, or audience.
  • Take action and improve: Based on your data analysis, you need to take action and improve your marketing performance and outcomes. You need to use your data to make data-driven decisions, such as what to do more of and what to do less of, what to change and what to keep, or what to test and what to implement. You also need to use your data to optimize your marketing tactics and channels, and to allocate your marketing resources and budget effectively. You also need to measure and evaluate the impact of your actions and improvements, and to iterate and refine your marketing strategy and goals accordingly.

Conclusion

Vanity metrics are metrics that make you look good to others, but do not help you understand your own performance in a way that informs future strategies. They are often easy to measure and manipulate, but they do not indicate any real return on investment or customer behavior. Examples of vanity metrics include website traffic, social media followers, email subscribers, and video views.

To avoid vanity metrics, you need to focus on metrics that are relevant, meaningful, and actionable for your marketing strategy and goals. These metrics are often called actionable metrics, as they help you take action and make decisions that improve your marketing performance and success. To avoid vanity metrics and use actionable metrics instead, you need to define your marketing goals and objectives, choose your key performance indicators, track and analyze your data, and take action and improve.

By avoiding vanity metrics and using actionable metrics, you can improve your marketing performance and outcomes, align with your business objectives, and build trust and credibility with your stakeholders.

API Based Economy in India: A New Paradigm for Growth

Prasad AjinkyaLeave a comment
Digital India

APIs, or Application Programming Interfaces, are the building blocks of the digital economy, enabling software applications and systems to communicate and exchange data with each other. APIs are essential for creating seamless and integrated digital experiences, as well as enabling innovation and collaboration across various sectors and domains.

India and the APIs

India, as one of the fastest-growing and most diverse economies in the world, has a huge potential to leverage APIs to transform its businesses, industries, and society. According to a report by NASSCOM, the Indian API market is expected to grow at a CAGR of 17.2% from 2019 to 2024, reaching $5.1 billion by 2024.

The report also identifies six key drivers for the growth of the API economy in India, namely:

  • Digital transformation: As more businesses and organizations adopt digital technologies and platforms to enhance their efficiency, productivity, and customer satisfaction, APIs play a vital role in enabling interoperability, scalability, and agility.
  • Government initiatives: The government of India has launched several initiatives and policies to promote the adoption and development of APIs, such as the India Stack, a set of open APIs that provide access to various digital infrastructure and services, such as Aadhaar, UPI, eKYC, and eSign. The government has also mandated the use of APIs for various public services and schemes, such as GST, FASTag, and Ayushman Bharat.
  • Startup ecosystem: India has a vibrant and dynamic startup ecosystem, with over 50,000 startups operating in various domains, such as fintech, e-commerce, healthtech, edtech, and agritech. These startups rely on APIs to access and offer various solutions and services, such as payments, logistics, analytics, and cloud computing.
  • Consumer demand: The Indian consumer market is one of the largest and most diverse in the world, with over 1.3 billion people and a growing middle class. The Indian consumers are increasingly demanding and expecting personalized, convenient, and seamless digital experiences, which can be delivered by APIs.
  • Data explosion: India is witnessing a massive surge in data generation and consumption, driven by the proliferation of smartphones, internet penetration, social media, and online platforms. According to a report by Cisco, India’s IP traffic is expected to grow at a CAGR of 26% from 2018 to 2023, reaching 21.5 exabytes per month by 2023. APIs enable the efficient and effective management, analysis, and utilization of this data, creating value and insights for businesses and consumers.
  • Innovation and collaboration: APIs foster a culture of innovation and collaboration, as they allow businesses and organizations to create and offer new and improved products, services, and solutions, by leveraging the capabilities and resources of other entities. APIs also enable the creation of new and niche markets and segments, such as peer-to-peer lending, microfinance, and social impact.

Key benefits of using APIs

The API economy in India is creating new opportunities and challenges for businesses, industries, and society. Some of the benefits of the API economy include:

  • Enhanced customer experience: APIs enable businesses to offer personalized, convenient, and seamless digital experiences to their customers, by integrating various solutions and services, such as payments, delivery, loyalty, and feedback. APIs also enable businesses to reach and engage new and untapped customer segments, such as rural and unbanked populations, by leveraging the digital infrastructure and platforms provided by the government and other entities.
  • Increased efficiency and productivity: APIs enable businesses to optimize and automate their processes and operations, by connecting and synchronizing various systems and applications, such as ERP, CRM, and inventory management. APIs also enable businesses to reduce their operational costs and risks, by outsourcing and accessing various solutions and services, such as cloud computing, analytics, and security, from third-party providers.
  • Improved innovation and competitiveness: APIs enable businesses to innovate and differentiate themselves from their competitors, by creating and offering new and improved products, services, and solutions, by leveraging the capabilities and resources of other entities. APIs also enable businesses to collaborate and partner with other entities, such as startups, government, and academia, to co-create and co-deliver value and impact.

Risks and challenges ahead

However, the API economy in India also poses some challenges and risks, such as:

  • Data privacy and security: APIs involve the exchange and sharing of sensitive and personal data, such as identity, financial, and health information, which can be vulnerable to breaches, leaks, and misuse. Therefore, businesses and organizations need to ensure that they comply with the relevant laws and regulations, such as the Personal Data Protection Bill, 2019, and the Information Technology Act, 2000, as well as adopt best practices and standards, such as encryption, authentication, and authorization, to protect the data and the rights of the data subjects.
  • Quality and reliability: APIs need to ensure that they provide consistent, accurate, and reliable data and services, as they can affect the performance and functionality of the applications and systems that depend on them. Therefore, businesses and organizations need to ensure that they test, monitor, and maintain their APIs, as well as adopt quality and reliability metrics and measures, such as SLAs, uptime, latency, and error rates, to ensure the satisfaction and trust of their customers and partners.
  • Regulation and governance: APIs need to comply with the relevant laws and regulations, as well as the policies and guidelines of the entities that provide or consume them. Therefore, businesses and organizations need to ensure that they understand and adhere to the legal and contractual obligations and responsibilities, as well as the ethical and social implications, of their APIs. They also need to establish and enforce clear and transparent governance mechanisms and frameworks, such as API documentation, versioning, and lifecycle management, to ensure the accountability and sustainability of their APIs.

The API economy in India is a new paradigm for growth, as it enables businesses, industries, and society to leverage the power and potential of the digital economy, and create value and impact for themselves and others. How we leverage this and grow on to become the largest economy is something that still remains to be seen and this is where the next set of technology companies should be working on.

Generative AI in lending

Prasad AjinkyaLeave a comment
AI content creator generated using DALL-E

The Indian lending market is one of the fastest-growing and most diverse in the world, with a huge potential for financial inclusion and social impact. According to a report by Boston Consulting Group, the Indian lending market is expected to grow from $1.2 trillion in 2019 to $3.5 trillion by 2024, driven by the increasing demand for credit from individuals, small businesses, and rural segments.

Problems in the lending industry

However, the Indian lending market also faces several challenges, such as high operational costs, low credit penetration, complex regulatory environment, and high credit risk. Traditional lending models rely on manual processes, limited data sources, and rigid criteria, which result in inefficiencies, delays, and exclusions. Moreover, the COVID-19 pandemic has exacerbated the situation, as lenders face increased defaults, liquidity crunch, and changing customer behavior.

To overcome these challenges and tap into the opportunities, lenders need to adopt innovative and agile solutions that can enhance their efficiency, scalability, and profitability. This is where generative AI, a branch of artificial intelligence that can create novel and realistic content, such as text, images, audio, and video, comes into play.

What can generative AI do?

Generative AI can transform the Indian lending landscape by enabling lenders to:

  • Automate and optimize the lending process: Generative AI can automate and optimize various steps of the lending process, such as customer acquisition, verification, underwriting, disbursal, and recovery. For example, generative AI can create personalized and engaging marketing campaigns, analyze alternative and unconventional data sources, such as social media, e-commerce, and geolocation, to assess creditworthiness and risk, generate customized loan offers and contracts, and create interactive and empathetic chatbots and voice assistants to facilitate communication and collection.
  • Enhance fraud detection and prevention: Generative AI can enhance fraud detection and prevention by identifying and flagging suspicious patterns and anomalies in the data and transactions. For example, generative AI can detect fake or tampered identity proofs and documents, such as Aadhaar cards, PAN cards, and bank statements, by comparing them with the original or authentic versions. Generative AI can also detect fraudulent or malicious behavior, such as identity theft, money laundering, and cyberattacks, by analyzing the behavioral and transactional data of the customers and the lenders.
  • Innovate and diversify the lending products and services: Generative AI can innovate and diversify the lending products and services by creating new and tailored solutions that cater to the specific needs and preferences of the customers. For example, generative AI can create dynamic and flexible loan products that adjust to the changing circumstances and requirements of the customers, such as income fluctuations, emergencies, and life events. Generative AI can also create new and niche lending segments and markets, such as peer-to-peer lending, microfinance, and social impact lending, by leveraging the power of the crowd and the network.

Challenges in using generative AI

Generative AI is a new frontier for the Indian lending industry, as it offers immense possibilities and benefits for both the lenders and the customers. However, generative AI also poses some challenges and risks, such as ethical, legal, and social implications, data quality and security issues, and human-machine interaction and collaboration challenges. Therefore, generative AI needs to be adopted and implemented with caution and responsibility, ensuring that it is aligned with the values and goals of the stakeholders and the society.

I am not even going to talk about the compliance risk and the risk of using a pre-cooked model which may not even be similar to the target audience.

Generative AI is not a magic bullet that can solve all the problems of the Indian lending industry, but it is a powerful and promising tool that can augment and enhance the existing capabilities and solutions. Generative AI can help the Indian lenders to become more efficient, scalable, and profitable, while also serving the customers better and faster.

However, smart and crisp solutions are yet to be seen in the Indian market, and this is an area of work for us at Homeville.

WordCamp Ahmedabad 2023

Prasad AjinkyaLeave a comment

After attending WordCamp Mumbai this year, I decided to keep attending more WordCamps throughout India. As luck would have it, Ahmedabad was just around the corner and I did my booking. WordPress is also used as a quick fix for landing pages in advertising, and hence I thought it would be a good exercise for Harshaja to attend, hoping that she meets some competent (and affordable) WordPress agency to handle the development side of things at 13 Llama‘s end. That, and the super interesting schedule that Ahmedabad had put up.

Getting to Ahmedabad

We chose to take the early morning flight to Ahmedabad. That just meant that the day of the event would be super long for us. Since we hardly knew any folks in the city, this was an easy decision to make. I personally wanted to stay and do some site seeing in this city, but no harm – we could always hop by on one of our annual trips to Vadodara.

The flight was short and getting off the airport and into the cab was one of the smoothest exits we have had. Carrying everything in an overnight handbag does have its advantages!

Venue: Babasaheb Ambedkar Open University

One of the supercool things that struck me during this event was the way Babasaheb Ambedkar Open University (BAOU) was setup. Within a 30 minute drive from the airport, the venue is a sprawling university campus that had access to multiple halls, classrooms, and a great open space where the attendees could congregate in.

I honestly cant imagine the cost of such a large sized venue in Mumbai.

Attendees

We thought that instead of checking-in at the hotel, we would directly attend the event and during the breaks in the afternoon do a quick run to the hotel and finish the checkin process. Thus we directly stopped over at the BAOU campus.

At a little bit earlier than 8am, I was expecting the organizers to be just about gathering and deciding on how they want to execute the rest of the day. To my surprise, there was the beginnings of a crowd already gathering.

What ended up as a small crowd quickly grew to a large congregation, with over 1100 attendees, the WordCamp Ahmedabad 2023 was the second largest WordCamp in Asia, second only to WordCamp Asia!!

I could not help but compare this large audience to what we had in Mumbai. This was more than double the audience of Mumbai and then some!

Talks and Speakers

One thing that always strikes me is that every WordCamp I learn something new. Something that helps me in the future years. Even this time, one of the highlights of the event was the last talk by Nirav Mehta. This one was on public speaking and one of the reasons why I had made sure that the both of us were there to attend.

Some of the other notable talks were on Link Building by an agency owner, Custom Blocks by Amartya Gaur, Yoast’s acquisition by Chaya Oosterbroek. It’s uncanny that even when my functional domain has completely changed, I still took a bunch of learning back from the event!

Ahmedabad, you beauty!

As the day came to an end, I could not help but get overwhelmed with the vibrant PHP developer community that I could see in Ahmedabad. It’s definitely larger and more vocal than the Mumbai community and thus would always be one of the factors for us if we were to open a secondary development office. In fintech, I am seeing more companies shift their technical operations to T2 and T3 cities like Ahmedabad and how!

આવજો

6 months of lockdown

Prasad AjinkyaLeave a comment

As I write this after nearing the 6 months mark of lockdown, I cannot help but think at looking back at how things have changed in the last 6 months or so.

  • Work from home is an accepted norm with remote working at an all time rise. The organizations that could slide into this mode of working have also started realizing the benefits of allowing teams to operate from home. Any teething troubles that were there have been ironed out and I am see teams of all functions coming together on Zoom/Hangouts and making it work.
  • Reverse migration has started. A lot of this working class who can work remotely has opted to move back to their native places. Just to give an example, out of my team of 8 – only one has chosen to stay in the city … the rest are safely back at their native places across the country.
  • Internet penetration and mobile services are at an all time high. The demand for Jio has never been higher with this working class scrabbling to ensure that they have steady connections at home. I see this audience’s demand in Tier-2 and Tier-3 cities ensure that brands and the government focus on building out the infrastructure in remote cities.
  • This would lead to some normalization between demand and supply of all goods across higher and lower tier cities. Take Mumbai for example … in the suburbs or in Mumbai proper, it is hardly a case when you see an electricity outage. As you go outwards, you will start seeing specific load shedding hours and schedules. In the Raigad district, there is atleast one day a week when there is no electricity. As the working class goes back to these cities, either the demand for inverters will go up or the respective local governments would be petitioned to increase the quality of lifestyle.
  • Environment conditions across all cities have drastically improved, the Mumbai air feels cleaner, cooler and taking a walk doesn’t seem oppressive.
  • Organizations whose engagement models involved a lot of physical interaction have started discovering alternative methods and workarounds. Dentists have started using full-body kits, delivery boys have established clear package hand-off protocols, restaurants have started opening up with lower floor space utilization.
  • Cost of basic services and commodities have slowly increased. An annualized inflation of 15-16% looks to be on the cards and the common man is going to bear the brunt of this. Any initiative the government is going to take is only further going to exacerbate this.
  • Industries that have been doing well since lockdown –
    • Food Deliveries
    • E-commerce
    • Agri-tech
    • App enabled services
    • Edtech
    • Fintech
  • Communication apps are at an all time high. Zoom has made it to the top 10 websites in India according to Alexa.com
  • OTT platforms are raking it in with a lot of the younger audiences looking at their smartphones for entertainment. Since there haven’t been any theatre releases, all the movies that were scheduled to be released have started being covered on the OTT platforms. A quick glance at the above list by Alexa informed me that Netflix, PrimeVideo and HotStar were all in the top 20.
  • Big tech firms are going all out to change the way things are. Google pretty much gave all schools free access to Google Classroom. Both my children are using this for their new term this year.

As things start settling down from this massive change in life, I see a resilience being shown by businesses as they start figuring out a way to live and thrive in this economically challenging environment. As a technologist, I see a large need to automate a lot of business processes to keep the wheels of the industry turning.

This is what will keep the world going round.

Data the new Oil

Prasad AjinkyaLeave a comment

Any analysis team would work day and night to justify the reason for their being. There are enough articles being shared on the internet on arriving at a Return on Investment for Analytics (RoIA). However, the main service that any of these teams did was to crunch business data into A-has. This hasn’t changed over the years, and a lot of analysts derive job satisfaction through this very hunt for the A-ha! from their audiences.

The switch to being a core business

Data and business analysis was until now a support function, which needed business data in order to thrive and be effective. Aside from very few models (those that sold business critical data such as ratings, organizational data, etc), the data was never used as the primary product.

There was always a pre-activity and an analysis activity for that data to be useful. However, over the years I am seeing that has changed. Data is now being presented and sold as the main product.

Data as the product

Those of you who know Bloomberg, Hoovers, S&P or CRISIL, would know that data as a product business model works. Now that you know the pattern, let’s take a look at how this business model works.

Data collection as a ancilliary service

There is one function of the business which works with the entire industry it is catering to, to collect data. This more often than not is made available as a freemium or free service.

Some examples of this would be – Alexa Certified metrics, Google Analytics, Walnut app, Swaggerhub, etc.

You get the general idea here. If a good product or service is offering you a free plan, more often than not the data you are entering on that platform would be mused for multiple usecases. Not just for your primary use case.

Data aggregation and visualization

This is akin to the marketing function, and most probably gets a lot of early adopters talking good things about the product.

E.g a blogger singing paeans about Google Analytics, an industry benchmark visualization being shared, data report about a competitor, etc.

This way, the inherent value in the data is presented.

Data access and pricing plans

This is how the business is monetizing the data. By selling access to it. Often on a pay per use basis, or a per data point basis. Note, there might be multiple reports given to the user, however the user has to do the analysis on their own.

E.g SEMRush, SimilarWeb, Alexa, etc.

Wait, these are all old products

Yes. They have been around for quite some time. However, I am seeing that other industry are also copying this model. I recently spoke to someone in the pharma industry who was selling aggregated prescription data to pharma companies.

The credit industry has already been doing this for so many years. TransUnion is a perfect example. In India, most working professionals are familiary with their CIBIL scores. What few people realize that CIBIL is a TransUnion company. Similarily, CRIF score (which is an alternative bureau) belongs to Experian.

What gets my goat in this scenario, is that the firm which is collecting data is based out of another country! This firm now claims to own and know the data of citizens belonging to another country.

Shut up and take my data

Let’s go back 300 years or so. The British killed the Indian textile industry by mutilating the weavers who used to make cloth. Then they bought the cotton and other crops at throwaway prices, that cotton is similar to the data that is being collected. The industry grade cotton which was then imported back in India is similar to the data aggregation and reports that are being sold.

The only difference is that 300 years back, we were scared of the East India Company. This time around, we are welcoming the data traders with open arms. Should we not be a bit more aware of who and how our data is being used?

The reason why EU is taking such a harsh stance with GDPR is a bit more clear. Where is the call for privacy and better data sharing protocols?

Solving the problem of Discovery

Prasad AjinkyaLeave a comment

The real problem that Google solves, is the problem of availability. When you have a problem and are searching for the solution, Google provides you with a list of most likely content that can address the problem. The problem is created by information asymmetry. You just don’t know and are willing to try out or read about the different solutions.

However, over a period of time this has turned into a problem of plenty. So many content providers are creating content for the average internet user, that the options tend to give all the creators a sliver of traffic. This has led to a bulk of copy-cats and me-too content providers eyeing for their search visibility. So much so that one of the default rules of inbound marketing is to start a content creation cycle and hope that you keep attracting traffic via Search.

What can new brands do?

Stay away from the whole attack of the clones! All marketers would swear on grabbing the attention of the customer as many times as possible in order to drive a higher brand share. However, at the cost of what?

Instead of creating very similar content? How about solving things that matter instead?

How about identifying a niche area where there is a genuine need and people are struggling to find answers?

This might seem contradictory to what I was saying, but once a brand (or a team) starts engaging with the customers, then you start seeing a slew of issues that no content provider is addressing. Talking about these issues and solving them via your product or service is a far better way to get discovered, rather than to keep talking about how your me-too offering is different from the competitor’s me-too offering!

tl-dr;

Engage with customers to discover what message and positioning you need to take when it comes to working in a crowded market.