Vanity metrics vs profitability: Rethinking marketing KPIs

In a recent Vistage LIVE podcast, Stephanie Christopher welcomed Ashton Bishop, CEO of StepChange, to untangle the age-old question: Is there really a difference between B2B (business-to-business) and B2C (business-to-consumer) marketing? While industry jargon often sets these two approaches apart, Ashton insists that the principles of effective marketing remain the same, regardless of target audience.

The core of marketing: The value equation

Ashton argues that the heart of all marketing, whether B2B or B2C, is the value equation—what the customer gets versus what they pay. Many companies, he suggests, fail to create clarity around this value, leading them to make impulsive, short-term marketing moves. This impatience, he says, is where businesses often misfire, treating their marketing departments as “the colouring-in team” and neglecting the powerful role marketing can play in driving growth and profitability.

The fallacy of vanity metrics

Vanity metrics are a major pitfall. Businesses might feel tempted to focus on metrics like website visits, but Ashton warns that such numbers don’t always correlate with profitability. He emphasises the need for tools like a “digital balance sheet” and “digital profit and loss” to track digital assets and monitor which interactions truly drive cash flow. “Revenue itself can even be a vanity metric,” he notes, if it’s not translating into gross margin and long-term profitability.

Why B2B and B2C marketing aren’t so different

One of the big takeaways from this discussion is that the difference between B2B and B2C marketing is often overstated. While there are differences in complexity—like the number of decision-makers in B2B deals or the length of the sales cycle—Ashton highlights that every buying decision is ultimately emotional. In B2B, as in B2C, it’s crucial to win the customer emotionally first before making a logical case. Even in high-stakes B2B deals, the emotional aspect often drives the decision, with rational justifications following closely behind.

Effective marketing for B2B and B2C: Balancing brand and activation

A pivotal insight Ashton shares is the balance between brand building and conversion-focused efforts. In B2C marketing, the ideal spend ratio tends to be 60% brand and 40% conversion, while in B2B, it’s closer to 54% brand and 46% conversion. The longer sales cycle in B2B means a bit more emphasis on sales activation, but brand remains crucial.

“Brand and conversion are not either-or,” Ashton says, challenging leaders to embrace both. A well-developed brand presence can build the crucial top-of-mind awareness that positions a company favourably when customers finally enter the market.

Marketing that stands out: Be distinctive, not just different

When it comes to cutting through the noise, Ashton distinguishes between differentiation and distinctiveness. Differentiation may convey unique features, but distinctiveness—the ability to be unmistakably recognised as a particular brand—is what truly makes an impression. He cites the importance of aligning brand assets with what he calls “category entry points”: the specific moments when a customer shifts from disinterest to engagement due to a pain point.

Don’t do your own dentistry: The value of marketing expertise

Ashton closes with a memorable analogy: “Don’t do your own dentistry.” For him, marketing expertise is about applying time-tested principles. Effective marketing is less about the latest tricks and more about understanding the psychological processes that underlie every buying decision. This means starting from the customer’s perspective, understanding what genuinely motivates them, and delivering value that resonates emotionally and rationally.

Key takeaways for business leaders

For any business leader listening to this episode, Ashton’s advice offers a refreshing perspective on rethinking marketing KPIs as a central driver of growth. He encourages leaders to move beyond metrics that sound impressive but lack substance, emphasise value creation over short-term gimmicks, and, most importantly, engage customers at an emotional level to build loyalty and drive profitability.

In summary, effective marketing—whether B2B or B2C—demands an authentic, customer-centric approach that combines distinctiveness with disciplined use of both brand and conversion tactics. This way, businesses can remain relevant and competitive in a rapidly evolving market.