Data Metrics Analytics Decision

Intuition is Dead: Why the Architect Only Pilots by Data

By Mahfod November 30, 2024 7 min read

Intuition is Dead: Why the Architect Only Pilots by Data

There are two ways to run a business.

The “Artist” way: “I feel like it’s going to work”, “I like this color”, “I had a great idea this morning”, “My gut tells me…”

The “Architect” way: “What do the numbers say?”

In the old world, intuition could pay off. You could have a “nose” for things. Great entrepreneurs were celebrated for their almost mystical “vision.”

In the world of algorithms and AI, intuition is a dangerous luxury.

Google’s algorithm doesn’t care about your feelings. Facebook’s algorithm ignores your aesthetic preferences. The market only respects data signals.


The Problem with Human Intuition

Our intuition is a wonderful tool… for surviving on the savanna.

It’s catastrophic for piloting a digital business.

The Biases That Blind Us

Confirmation bias: You only see data that confirms what you already believe. Your article made 3 sales? “It’s a success!” (You ignore that it had 10,000 views, a conversion rate of 0.03%).

Recency bias: What happened yesterday weighs more than underlying trends. A bad day makes you panic. A good day makes you euphoric. Neither is significant.

Ego bias: You love your creation, so it must be good. The market disagrees? The market is wrong.

Survivorship bias: You see successes (those who succeeded with intuition) and ignore the millions of silent failures.

Intuition in an Algorithmic World

In a pre-digital world, intuition could work because:

  • Feedback was slow (months, years)
  • Data was rare and expensive
  • Human experience was irreplaceable

Today:

  • Feedback is instant (hours, days)
  • Data is abundant and free
  • AI can analyze patterns invisible to the human eye

Continuing to pilot by intuition is driving an F1 car with your eyes closed.


The AEP is a Data Machine

One of the major advantages of an AEP (Architectural Economic Platform) over a classic business is that it captures everything.

What Your AEP Sees

  • Every click on every link
  • Every scroll on every page
  • Time spent on each section
  • The path of each visitor (where they come from, where they go)
  • Keywords that bring traffic
  • Hours when your content performs
  • Devices used
  • Geographic locations
  • Open rates for each email
  • Click rates for each CTA
  • Conversion rates for each offer

It’s a real-time X-ray of your economic system.

What Most Entrepreneurs Do with This Data

Nothing.

They have Google Analytics installed. They never look at it. They have email statistics. They just check “how many subscribers.” They have social media metrics. They look at likes.

It’s like having a Ferrari dashboard and only looking at the odometer.


Having Data Isn’t Enough

Having data is useless if you don’t know:

  1. Which ones to look at (signal vs noise)
  2. How to interpret them (context)
  3. What actions to take (decision)

The Economic Architect isn’t drowning in dashboards. He has identified the metrics that matter and ignores the rest.


The 3 Metrics That Really Matter

Forget “Vanity Metrics.”

Vanity metrics flatter the ego but don’t fill the fridge:

  • Number of followers
  • Number of likes
  • Number of views
  • Number of email subscribers (without looking at engagement)

The Economic Architect only looks at 3 indicators on his dashboard:

1. CAC (Customer Acquisition Cost)

Definition: How much does it cost you (in time or money) to acquire a new qualified visitor.

Calculation:

CAC = (Marketing expenses + Valued time invested) / Number of customers acquired

Example:

  • You spent $500 on ads + 20h of work (valued at $50/h = $1,000)
  • You acquired 50 customers
  • CAC = $1,500 / 50 = $30 per customer

What it tells you:

  • If CAC rises → Your acquisition system is sick
  • If CAC drops → Your system is becoming more efficient
  • If CAC > LTV → You’re losing money on every customer

The Architect’s objective: Reduce CAC toward zero through SEO and evergreen content.

2. LTV (Lifetime Value)

Definition: How much a customer brings you over their entire lifetime in your ecosystem.

Calculation:

LTV = Average purchase value × Number of purchases × Relationship duration

Example:

  • Average purchase: $100
  • Purchases per year: 3
  • Average relationship duration: 2 years
  • LTV = $100 × 3 × 2 = $600

What it tells you:

  • If LTV is low → You’re not building relationships, you’re making one-offs
  • If LTV is high → Your ecosystem retains and multiplies value
  • The LTV/CAC ratio should be > 3 for a healthy business

The Architect’s objective: Maximize LTV through retention, upselling, and long-term relationships.

3. The Leverage Ratio

Definition: This is THE metric specific to AES. It measures your real productivity.

Calculation:

Leverage Ratio = Revenue generated / Hours worked

Operator example:

  • Revenue: $10,000/month
  • Hours worked: 160h/month
  • Ratio = $62.5/h

Architect example:

  • Revenue: $10,000/month
  • Hours worked: 10h/month (system maintenance)
  • Ratio = $1,000/h

What it tells you:

  • Ratio < $100/h → You’re still an Operator
  • Ratio $100-500/h → You’re in transition
  • Ratio > $500/h → You’re a true Architect
  • Ratio > $1,000/h → Your system is mature

The Architect’s objective: Obsessively optimize this ratio.


The Architect’s Dashboard

Here’s what a minimalist but powerful dashboard looks like:

MetricCurrent ValueTrendObjective
CAC$25< $20
LTV$450> $500
LTV/CAC18> 20
Leverage Ratio$850/h> $1,000/h
Hours/week5h< 4h

That’s it. Not 47 dashboards. Not 200 metrics. 5 numbers that tell the entire health story of your system.


The Data-Decision-Action Loop

The Architect follows a simple and repetitive process:

1. Observe (Data)

Each week, look at your 5 key metrics. Not every day (too much noise). Not every month (too slow to react).

2. Analyze (Decision)

Ask yourself these questions:

  • What’s improving? (Continue)
  • What’s degrading? (Investigate)
  • What’s stagnating? (Test something new)

3. Act (Action)

One action per week maximum. Not 10 simultaneous changes (impossible to know what works). One change. One measurement. One conclusion.

4. Measure (Return to Data)

Wait long enough to have significant data. Minimum 7 days for content tests. Minimum 30 days for structure tests.


The Architect’s Intuition

Is intuition totally useless? No.

The Architect’s intuition is not the artist’s intuition.

It’s an intuition informed by data.

After months of looking at the same metrics, you develop a “sixth sense” for:

  • Detecting anomalies before they clearly appear
  • Sensing when a test will work
  • Anticipating market trends

But this intuition is built on foundations of data, not emotions.


The New Morning Ritual

The Architect doesn’t wake up in the morning to “work.” He wakes up to optimize his ratios.

Old ritual (Operator):

  • Open emails
  • Respond to emergencies
  • Write content
  • Post on social media
  • Collapse at night

New ritual (Architect):

  • Check the dashboard (5 min)
  • Identify the highest-leverage action (10 min)
  • Execute or delegate that action (variable)
  • Return to living life

The Architect works on his system, not in his system.

And he knows exactly what to do thanks to data.

Intuition is dead. Long live the intelligence of data.