Glossary · Analytics

KPI

Key Performance Indicator–a measurable value that demonstrates how effectively an organization is achieving its objectives.

A Key Performance Indicator (KPI) is a quantifiable metric used to evaluate the success of an organization, department, project, or individual in achieving specific objectives. Effective KPIs are SMART: Specific, Measurable, Achievable, Relevant, and Time-bound. Common business KPIs include Monthly Recurring Revenue (MRR), Customer Acquisition Cost (CAC), Customer Lifetime Value (CLV), Net Promoter Score (NPS), churn rate, conversion rate, and employee retention rate. KPIs are typically tracked on dashboards and reported in regular cadences (daily, weekly, monthly, quarterly). The choice of KPIs depends on the business model, industry, and strategic priorities.

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