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" "Interestingly, I see this same problem play out in many consumer Internet startups. I often see teams that maniacally focus on their metrics around customer acquisition and retention. This usually works well for customer acquisition, but not so well for retention. Why? For many products, metrics often describe the customer acquisition goal in enough detail to provide sufficient management guidance. In contrast, the metrics for customer retention do not provide enough color to be a complete management tool. As a result, many young companies overemphasize retention metrics and do not spend enough time going deep enough on the actual user experience. This generally results in a frantic numbers chase that does not end in a great product. It’s important to supplement a great product vision with a strong discipline around the metrics, but if you substitute metrics for product vision, you will not get what you want.
Ben Horowitz (born June 13, 1966) is an American businessman, investor, blogger, and author.
Biography information from Wikiquote
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On one such call, a salesperson described an account that he’d forecast in detail: “I have buy-in from my champion, the vice president that he reports to, and the head of purchasing. My champion assures me that they’ll be able to complete the deal by the end of the fiscal quarter.” Mark quickly replied, “Have you spoken to the vice president’s peer in the networking group?” Sales rep: “Um, no I haven’t.” Mark: “Have you spoken to the vice president yourself?” Sales rep: “No.” Mark: “Okay, listen carefully. Here’s what I’d like you to do. First, reach up to your face and take off your rose-colored glasses. Then get a Q-tip and clean the wax out of your ears. Finally, take off your pink panties and call the fucking vice president right now, because you do not have a deal.