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Ecwid Ecommerce Glossary

Key Performance Indicator (KPI)

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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. 

In e-commerce, KPIs usually fall into one of the following categories:

  • 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).

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