KPI (Key Performance Indicator)
A KPI (Key Performance Indicator) is a measurable value that demonstrates how effectively a business is achieving its key objectives. KPIs turn business goals into trackable metrics.
Common KPIs by Function
- Sales: Conversion rate, speed to lead, average deal size, pipeline value
- Marketing: Cost per lead, email open rate, CTR, campaign ROI
- Retention: Churn rate, retention rate, NPS, customer lifetime value
- Operations: Revenue per member, average revenue per unit, utilization rate
Choosing the Right KPIs
Good KPIs are specific, measurable, and directly tied to business outcomes. Avoid vanity metrics (social media followers, page views) in favor of actionable metrics (conversion rate, revenue per member, churn rate) that drive decisions.
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