KPI examples

A Key Performance Indicator (KPI) is a measurable number that highlights key business objectives. Depending on your industry and the specific department you are interested in tracking, there are a number of KPI types your business will want to monitor. Each department will want to measure success based on specific goals and targets. If you are a marketer, own a business, or are simply goal-oriented, chances are that you use KPI or metrics to have some kind of performance measure. People in sales could use them to measure customer retention, qualified leads, or average order value, business owners would use metrics for overall gross profit margin, financial KPIs, or employee satisfaction. All of these examples use KPI for one thing in mind, to make better decision making.

While metrics and KPIs are both quantitative measurements and they do have some similarities, they are pretty different. While KPIs are tied to business targets or goals, metrics are tied to the process of achieving those goals. 

For example, if the goal is to sell 25 percent more products in the next quarter, your key performance indicator might be the number of products. However, when looking at the data, you will want to include a variety of metrics, including website traffic, number of customers, sales per channel, turnover rate, etc. Different metrics will help you identify which areas are contributing more to the attainment of your overall goals, or initiatives you should try, as well as pinpoint problem areas that are holding you back. 

For a company to run smoothly, you ideally need both KPIs and metrics, working together in real-time to achieve your targets.