Explaining what is marketing analytics to stakeholders who need to see value

Struggling to get buy-in from leadership on proper analytics tracking.

They keep asking why we need more tools when we already have basic conversion data. How do you explain the difference between vanity metrics and actionable insights without sounding too technical?

Use the leaky bucket analogy. Explain that you’re pouring water (users) into a bucket with holes (churn). Basic metrics show the inflow but miss the outflow.

Had this issue with a gaming app. Leadership saw 10k daily installs, but analytics revealed 70% uninstalled within 3 days. We were throwing away $50k a month on users who’d never last.

After tracking the full funnel, we slashed acquisition spend by 30% and focused on retention. Revenue increased since we kept the useful users.

Show them competitors who’ve figured this out first. That really gets their attention.

Show them one metric that directly connects to revenue growth.

Pick one campaign that’s performing well based on their current metrics. Then show them what’s actually happening underneath. Maybe it has great click rates but terrible day 30 retention or high installs but low LTV. Walk through the real cost per valuable user versus what they think they’re paying. Once they see how much money is being wasted on users who don’t stick or pay, the conversation shifts from why do we need this to how fast can we set it up.