A key performance indicator (KPI) is the key indicator of progress required to reach an intended outcome. It is used to monitor and measure effectiveness. Although there are some common KPIs across all industries, most industries have their own key performance indicators.
As Peter Drucker pointed out, “What gets measured gets done.”
Managing the KPIs usually means working on what drives lagging benefits. It includes setting goals and tracking progress against that goal.
Good KPIs should act as a compass, helping you understand whether you’re taking the right path towards your strategic goals. Effective KPIs have the characteristics of being:
Crucial to achieving your organizational objective,
Applicable by related departments,
Offers comparison that measures performance change over time,
Balanced between leading and lagging indicators.
Here are some instances of common KPI sources an organization uses to measure the performance of its business goals:
Number of new email list subscribers,
Number of new accounts created by unique visitors,
Return on investment for different digital activities,
Average time on site,
Number of customers acquired,
Number of customers retained,
Percentage of market share,
Website traffic in a given time frame,
Number of qualified leads,
Number of clicks on call-to-actions,