What is KPI?
A key performance indicator, or KPI, is a measurable value that shows how effective a company is in achieving its key business objectives.
Companies use KPIs to evaluate their success at reaching their objectives. A good KPI helps a company to understand whether they’re taking the right path toward their strategic goals.
- Manufacturing (for example: cycle time, overall labor effectiveness, yield)
- Marketing (for example: time on site, social media engagement, PPC traffic volume, email open rate)
- Sales (for example: total sales by month, average order size, gross profit, customer lifetime value)
- Customer service (for example: customer satisfaction score, active issues, first response time, average resolution time)
- Project management (for example: hours worked, budget, return on investment).