What is Key Performance Indicator?
A Key Performance Indicator (KPI) is a measurable value that assesses how effectively an organization or team is achieving key business objectives. KPIs are used to evaluate performance and guide decision-making by providing insights into areas such as user engagement, conversion rates, and revenue growth.
Types of KPIs:
- Quantitative KPIs: Measurable data such as sales figures or website traffic.
- Qualitative KPIs: Subjective metrics such as customer satisfaction or brand perception.
For instance, a digital marketing team might use KPIs like conversion rates and click-through rates to gauge the success of their campaigns. By analyzing these metrics, they can adjust strategies to better meet their objectives.