Choosing the Right Metrics
Different businesses optimize for different outcomes:
**Engagement metrics:**
- CTR (Click-Through Rate) — Are users clicking?
- Watch time / dwell time — Are they engaging?
- Session length — Are they staying?
**Business metrics:**
- Conversion rate — Are they buying/subscribing?
- Revenue per user — What's the dollar impact?
- Basket size — Are they buying more items?
**Long-term metrics:**
- Retention / return visits — Are they coming back?
- Lifetime value — What's the long-term impact?
**Health metrics (guardrails):**
- Catalog coverage — Are we showing diverse items?
- Novelty — Are we surfacing non-obvious items?
- User satisfaction surveys
Don't optimize a single metric in isolation. A model that only recommends bestsellers might have high CTR but poor diversity and user satisfaction.
