KPI
Table of Contents
What is KPI?
A key performance indicator (KPI) is a measurable value that demonstrates how effectively a company achieves strategic objectives.
Key points
- Characteristics: Specific, attainable, time‑bound, actionable.
- Examples: MRR growth, churn %, NPS, LTV:CAC ratio.
- Levels: Company, department, campaign.
- Dashboarding: Real‑time tracking via BI tools.
- Review cadence: Monthly or quarterly performance reviews.
Real‑world example Switching primary KPI from "leads" to "pipeline dollars" realigned marketing spend and improved ROI +35 %.
Pro tips
- Limit top‑line KPIs to 3‑5 to maintain focus.
- Tie each KPI to an accountable owner.
- Set leading and lagging indicators for foresight.
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