# What Is the Difference Between a Measure and a Metric?

Metrics and measures are frequently used interchangeably. They are frequently mistaken with one another and presented as the same item.

It is easy to mix the two since, in some ways, a metric is a kind of measure, although a more useful and informative measure. While a measure is a basic number - for instance, how many kilometers you have drivenâ€”a metric contextualizes that measure - how many kilometers you have traveled per hour. This added information increases the usefulness of the same statistic by several orders of magnitude, particularly when looking at commercial KPIs.

Conversions per thousand impressions are an illustration of a vital metric for an internet business. Understanding you have twenty conversions is a restricted measure in and of itself. A really positive KPI is knowing that those twenty conversions came from a hundred impressions. It is less beneficial if they came from a thousand impressions - context is crucial.

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## What Exactly is a Metric?

A metric is a quantitative measure. They are used to track certain operations, such as a marketing or sales initiative's conversion rate. Metrics allow organizations to evaluate the effectiveness of these processes.

To apply our previous example of kilometers traveled, you can only ascertain how far a person has traveled by using the measure (kilometers). You can determine how far they went, how much time it took them, and how quickly they were travelling by factoring in time. In a nutshell, a metric is a measure that includes an additional data point. Metrics, which are often shown on dashboards, are critical in measuring how effectively a firm is doing. They effectively repackage the raw measures into useful-yet-easy-to-digest chunks of data.

## What Exactly is a Measure?

A measure is a raw data representation, for instance a number or a value. They can be computed using sums or averages and include numbers indicating business-specific indicators such as goods sold, website visits, items returned, and phone calls. In manufacturing processes, measurements such as speed, operational temperature, and cycles are commonly used.

Continuing with our example of travel. We have stated two pertinent measures: distance and time. The aggregation of these measures yields a metric, but the measures individually are effectively blind data, in that they make no claims about the entity being measured other than the measurement itself. If we claim a person traveled 30 kilometers, we can only state how far they traveled. We'd need the extra time to know if they were moving quickly or slowly.

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## What Is the Distinction Between Metrics and Measures?

The most evident distinction between metrics and measures is that measures are fundamental units that convey relatively minimal information on their own. If you received a report that simply stated, "We sold three hundred units," it would not be very informative. What are three hundred units of? How long did it take? Were all of the units sold or were some returned?

Metrics combine measures with some other types of data to construct a story. If the previous report stated, "we sold 300 units of product X during the last quarter," you have a more complete overview of how things are progressing. When this data is combined with the same metric from the prior quarter, you get a worthwhile KPI. If you sold 100 units of product X the last quarter and 300 units this one, your sales increased by 200% quarter over quarter. You can tell that this is a significantly more relevant metric right away.

A report that says you sold 400 units of a given product in the last two quarters offers you the same data, but it doesn't inform you about the progress from the previous quarter to this one, much like that measure alone doesn't give you much details. Consider a measure just as an ingredient in your favorite recipe. You can't create the dish without that ingredient, but you would not want to consume it on its own.