KPI stands for key performance indicator, a quantifiable measure of performance over time for a specific objective. KPIs provide targets for teams to shoot for, milestones to gauge progress, and insights that help people across the organization make better decisions.

KPI vs. Metrics

While key performance indicators and metrics are related, they are not the same. Here is a quick explanation:

• Our definition of KPIs is the key targets you should be tracking to make the biggest impact on your strategic business outcomes. These KPIs will support your strategy and help your teams focus on what is important. For example, a key performance indicator could be targeted new consumers by month.

• Metrics, on the other hand, will measure the success of everyday business activities that support your identified KPIs. While they may have an impact on your outcomes, they are not the most critical measurements. Examples could include monthly site visits or number of modules installed.

Customer Insights KPI

As the name implies, the goal here is to examine customers and that is performed on three different levels: global view, detailed customer view, and customer/product portfolio. The key KPIs being analyzed are:

• Revenue

• Margin

• Volume

• Health Score