Fixating on short-term goals can lead to unintended consequences. Businesses must balance short-term gains with long-term sustainability to avoid potential fallout.
Guardrail metrics are essential to protect your business from unintentional harm while experimenting with new methods aimed at improving performance.
While success metrics indicate progress towards goals, guardrail metrics ensure that critical business elements like customer retention and employee well-being are maintained.
An example of a guardrail metric in action would be monitoring cart abandonment rates while trying to increase average order value through upselling.
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