What are KPIs?

Key Performance Indicators, commonly referred to as KPIs, are measurable values that demonstrate how effectively an organization is achieving key business objectives. They are used to evaluate success at reaching targets and can be quantifiable or qualitative metrics. KPIs provide critical insight into performance across different areas of a business, allowing stakeholders to make informed decisions based on data analysis.

These indicators can vary significantly depending on the specific business goals, industry, and operational focus. For example, a sales team may use KPIs such as monthly sales growth or customer acquisition cost, while a customer service team might focus on metrics like customer satisfaction score or average resolution time.

By consistently measuring and analyzing KPIs, businesses can track their progress, identify areas needing improvement, and adjust their strategies accordingly to optimize performance and results. This makes KPIs an essential part of the overall business intelligence framework.