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KPI (Key Performance Indicator)

Definition

A key performance indicator (or KPI) is a way to measure the performance of a business and its employees over time. Businesses use KPIs to assess the overall performance of the business, as well as specific processes in departments like sales, marketing, HR, and Support.

What are the 5 key performance indicators?

  • Revenue per customer (RPC)
  • Customer Lifetime Value (CLV)
  • Email Click through Rate (CTR)
  • Profit Margin (PM)
  • Average Daily Attendance (ADA)

How is KPI calculated?

Key performance indicators create a basis for decision-making and help focus attention on the most important objectives for business growth. KPIs can track efficiency, compliance, behaviors, finances, project performance, personnel performance or resource utilization.

What are examples of key performance indicators?

Here are a few examples of sales KPIs:

  • New Contracts Signed Per Period
  • Value of New Contracts Signed Per Period
  • Number of Engaged Qualified Leads in Sales Funnel
  • Hours Spent on Sales Follow Up
  • Average Time for Conversion
  • Net Sales
  • Dollar or Percentage Growth

Related Terms

Lifetime Value

Lifetime value (LTV, or customer lifetime value) measures how valuable a customer is to your business. Lifetime value is a prediction of the...

Read more 

Customer Lifetime Value

Customer lifetime value (CLV, or LTV for life-time value), is the predicted amount of revenue an average customer will generate for your...

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Click-Through Rate (CTR)

Click-Through Rate (CTR) is a ratio that compares how many people click a specific link to the number of total users that view a webpage or...

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Email Open Rate

Email open rate is the percentage of people who received an email and opened it.

Open rates vary widely, and depend on a range of...

Read more 

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