Key Performance Indicator (KPI): meaning, types, examples (2023)

Was it without key performance indicators (KPIs)?

Key Performance Indicators (KPIs) refer to a set of quantifiable measures used to gauge a company's overall long-term performance. In particular, KPIs help determine a company's strategic, financial, and operational performance, especially when compared to other companies in the same industry.

The central theses

  • Key performance indicators (KPIs) measure a company's success against a set of targets, targets, or industry peers.
  • KPIs can be financial in nature, including net profit (or bottom line, gross profit margin), revenue minus certain expenses, or current ratio (cash liquidity and availability).
  • Customer-centric KPIs typically focus on efficiency per customer, customer satisfaction, and customer retention.
  • Process-oriented KPIs aim to measure and monitor operational performance throughout the organization.
  • In general, companies measure and track KPIs using business analytics software and reporting tools.


Key Performance Indicators (KPIs)

Understand key performance indicators (KPIs).

KPIs, also known as key success indicators (KSIs), vary between companies and industries based on performance criteria. For example, a software company looking for the fastest growth in its industry might consider thisyear by year(YOY) Revenue growth as a key performance indicator. Conversely, a retail chain may place more emphasis on same-store sales as the best KPI metric to gauge its growth.

At the heart of KPIs is the collection, storage, cleaning, and synthesis of data. The information can be financial or non-financial in nature and can relate to any department of the company. The goal of KPIs is to communicate results in a concise way so that management can make more informed strategic decisions.

Key performance indicators (KPIs) measure a company's performance against a set of targets, targets, or industry peers.

KPI categories

Most KPIs fall into four different categories, with each category having its own characteristics, time frame, and user.

strategic KPIsThey are usually at the highest level. These types of KPIs can give an indication of how a business is doing, though they don't provide much information beyond a very high-level snapshot. Executives are more likely to use strategic KPIs, and examples of strategic KPIs include return on investment,Profit marginand the total sales of the company.

operational KPIsthey are geared towards a much tighter time frame. These KPIs measure a company's performance on a month-to-month (or even day-to-day) basis by looking at different processes, segments, or geographic locations. These operational KPIs are typically used by executives and are often used to discuss questions that arise from strategic KPI analysis. For example, if an executive notices that company-wide sales are down, he might ask which product lines are having problems.

(Video) What is a KPI? Types of Key Performance Indicators Explained with Examples

functional KPIsFocus on specific departments or functions within a company. For example, the finance department might track how many new vendors they log into their accounting information system each month, while the marketing department measures how many clicks each email distribution received. These types of KPIs can be strategic or operational, but they provide the most value for a specific group of users.

Leading/Trailing KPIsDescribe the nature of the data analyzed and whether it indicates something to come or indicates that something has already happened. Consider two different KPIs: the number of hours worked and the profit margin of a flagship product. The number of overtime hours worked can be an important KPI when the company begins to notice a deteriorationmanufacturingQuality. Alternatively, profit margins are the result of doing business and are considered a lagging indicator.

KPI Types

financial figures

Financial-related key performance indicators typically focus on sales and margins. Net income, the most reliable profit-based measure, represents the amount of income that remains as profit during a given period after accounting for all of the company's expenses, taxes, and interest payments during the same period.

Financial ratios can be found in a company's financial statements. However, internal management may find it more useful to analyze other numbers that are more specific to the analysis of the issues or aspects that the company's management wants to analyze. For example, a business may use variable cost accounting to recalculate certain account balances for internal analysis only. Examples of financial KPIs are:

  • liquidity ratios(dhradio actualdivide current assets by current liabilities): These types of KPIs measure how well a company is managing current debt obligations based on the current assets it has available.
  • profitability metrics(i.e. Net Profit Margin): These types of KPIs measure how good a company is at generating revenue while keeping expenses low.
  • solvency ratios(dhTotal Debt to Total Assets Ratio): These types of KPIs measure the long-term financial health of a company by measuring how well a company will be able to repay debt over the long term.
  • sales metrics(for example, inventory turnover): These types of KPIs measure how quickly a business can perform a specific task. For example, inventory turnover measures how quickly a business can turn an inventory item into a sale. Businesses strive to increase turnover to generate a faster turnover of cash spend to then recover that cash through revenue.

customer metrics

CouldFocused KPIs typically focus on efficiency per customer, customer satisfaction, and customer retention. These metrics are used byCustomer serviceteams to better understand the service customers have received. Examples of customer-centric metrics are:

  • Number of new ticket requests:This KPI counts customer service requests and measures how many new and open issues customers have.
  • Number of tickets resolved:This KPI counts the number of requests that have been successfully processed. By comparing the number of requests to the number of resolutions, a business can estimate its success rate in handling customer requests.
  • Mean solution time:This KPI is the average time it takes to help a customer with a problem. Businesses can choose to segment the average resolution time across different requests (ie, technical issue requests vs. new account requests).
  • Average response time:This KPI is the average time it takes for a customer service agent to first connect with a customer after the customer submits a request. Although the initial agent may not have the knowledge or experience to provide a solution, reducing the time a customer waits for help can be important to a business.
  • Main customer service representatives:This KPI is a combination of all the above metrics referenced by customer service representatives. For example, in addition to looking at the average response time for the entire company, a company might look at who are the fastest three responders and who are the slowest three.
  • Type of request:This KPI is a count of the different types of requests. This KPI can help a business better understand a customer's issues (ie the business website gave an incorrect or inaccurate address) that the business needs to resolve.
  • Customer Satisfaction Rating:This KPI is a vague measure, although companies can conduct post-engagement surveys or questionnaires to gather additional insights into the customer experience.

KPIs are generally not required externally; they are simply internal measures used by management to assess a company's performance.

process performance metrics

Process metrics are intended to measure and monitor operational performance throughout the organization. These KPIs look at how tasks are being performed and whether there are process, quality, or performance issues. These types of metrics are most useful for companies with repetitive processes, such as B. Manufacturing companies or companies in cyclical industries. Examples of process performance indicators are:

  • Production efficiency:This KPI is often measured as the production time for each phase divided by the total processing time. A company may strive to spend only 2% of its time sourcing raw materials; If it finds that it takes up 5% of the entire process, the company can target improvements in customer acquisition.
  • Total cycle time:This KPI is the total time it takes to complete a process from start to finish. This can be converted to an average cycle time when management wants to analyze a process over a period of time.
  • performance:This KPI is the number of units produced divided by the production time per unit. This is the average number of items made in a given time period and how fast the manufacturing process is.
  • Error rate:This KPI is the total number of defects divided by the total number of units produced. A business that works to reduce waste can better estimate the volume of items that fail quality control tests.
  • Quality rate:This KPI focuses on positive items produced rather than negative ones. By dividing the units successfully completed by the total number of units produced, this percentage informs management through a KPI of its success rate in meeting quality standards.


Marketing KPIs attempt to gain a better understanding of how effective marketing and advertising campaigns have been. These metrics often measure conversion rates, the frequency with which prospects take specific actions in response to a specific marketing medium. Examples of marketing KPIs are:

  • Website traffic:This KPI tracks the number of people who visit specific pages of a company's website. Management can use this KPI to better understand if online traffic is shifting to potential sales channels or if customers are not being routed correctly.
  • social mediaTraffic:This KPI similarly tracks views, followers, likes, retweets, shares, or other measurable interactions between customers and company social media profiles.
  • Conversion rate for call to action content:This KPI focuses on targeted advertising programs that encourage customers to take specific actions. For example, a specific campaign can encourage customers to take action before a specific sale date. A business can divide the number of successful engagements by the total number of content distributions to understand what percentage of customers responded to the call to action.
  • Blog articles published per month:This KPI simply counts the number of blog posts a business publishes in a given month.
  • Click Rates:This KPI measures the number of specific clicks made on email distributions. For example, certain programs can track how many customers opened an email distribution, clicked on a link, and made a sale.


A company may desire operational excellence; In this case, they may want to track the performance of their internal IT department. These KPIs can provide a better understanding of employee satisfaction or whether the IT department is adequately staffed. Examples of IT KPIs are:

  • Total System Downtime:This KPI measures the time that various systems must be taken offline for upgrades or repairs. While systems are down, customers may not be able to place orders or employees may not be able to perform certain tasks (for example,Accounting information systemIs under).
  • Number of tickets/decisions:This KPI is similar to customer service KPIs. However, these tickets and resolutions relate to requests from internal staff, such as hardware or software requirements, network issues, or other internal technology issues.
  • Number of functions developed:This KPI measures internal product development by quantifying the number of product changes.
  • Number of critical errors:This KPI counts the number of critical issues within systems or programs. A company should have its own internal standards for what constitutes a minor error and a major error.
  • Backup Frequency:This KPI counts how often critical data is duplicated and stored in a secure location. Based on record retention requirements, management may set different objectives for different information.


The ultimate goal of a business is to generate revenue through sales. Although sales are often measured by financial KPIs, sales KPIs take a more granular approach and use non-financial data to better understand the sales process. Examples of sales KPIs are:

  • Customer Lifetime Value (CLV):This KPI represents the total amount a customer is likely to spend on your products over the course of their relationship.
  • customer acquisition costs(CAC):This KPI represents the total sales and marketing costs required to acquire a new customer. By comparing CAC to CLV, companies can measure the effectiveness of their customer acquisition efforts.
  • Average dollar value for new contracts:This KPI measures the average size of new deals. A company may have a desired threshold to attract larger or smaller customers.
  • Average conversion time:This KPI measures the time from the first contact with a potential customer to the completion of a signed agreement to transact business.
  • Number of Engaged Leads:This KPI counts how many potential leads have been contacted or met. This metric can be further broken down into mediums such as visits, emails, phone calls, or other customer contacts.

Management can link bonuses to KPIs. For sales reps, your commission rate may depend on meeting expected conversion rates or generating a reasonable number of leads.


Organizations may also find it beneficial to analyze specific KPIs for their employees. From turnover to retention to satisfaction, a company may already have a wealth of information about its employees. Examples of personnel or personnel indicators are:

(Video) Key Performance Indicator KPI Meaning, Types, Examples

  • absenteeism Bowl:This KPI counts how many days a year or in a certain period of time employees get sick or miss shifts. This KPI can be an early indicator of unmotivated or dissatisfied employees.
  • Number of overtime hours worked:This KPI tracks the number of overtime hours worked to assess whether employees may be burned out or whether staffing levels are adequate.
  • Employee satisfaction:This KPI often requires a company-wide survey to gauge how employees feel about various aspects of the company. To get the most out of this KPI, companies should consider running the same survey each year to track changes from year to year on the exact same questions.
  • Employee turnover rate:This KPI measures how often and how quickly employees leave their jobs. Organizations can dig deeper into this KPI across departments or teams to determine why some positions may end faster than others.
  • Number of applicants:This KPI counts how many applications have been received for vacancies. This KPI helps assess whether job postings are reaching a wide enough audience to generate interest and attract strong candidates.

Examples of KPI

Let's take a look at electric vehicle maker Tesla (TSLA) to see some real KPI examples. These numbers are all from the fourth quarter 2021 results release.

vehicle production

During the quarter, Tesla produced a record 305,840 vehicles and delivered 308,650 vehicles.Production is a big problem for the company as it is constantly criticized for ramping up poorly. A larger scale of production means more market share and profit for Tesla.

automotive gross margin

For the quarter, Tesla's automotive gross margin increased to 30.6%.Gross margin is one of Tesla's best indicators of profitability because it isolates the cost of producing the vehicles. Tesla managed to increase its gross margin in the fourth quarter even as sales of lower-priced models outpaced higher-margin models.

Free cash flow

Tesla's free cash flow was $2.8 billion in the quarter. That's a big improvement over free cash flow of $1.9 billion in the prior year period.Tesla's current level of free cash flow production suggests the company is achieving profitability without the help of regulatory credit.

KPI levels

Companies can use KPIs at three broad levels. First,company-wide KPIsfocus on the overall health and performance of the business. These types of KPIs are useful for reporting back to management on how things are going. However, they are often not granular enough to make decisions. Company-wide KPIs often spark conversations about why certain departments are performing well or poorly.

At this point, companies often begin to dig deeper.Department level KPIs. Department-level KPIs are more specific than company-wide KPIs. These types of KPIs are often more significant in terms of why certain results occur. Many of the examples above are department-level KPIs because they focus on a niche aspect of a business.

If a company chooses to go even deeper, it can get involvedKPIs at the project level or sub-department level. These KPIs are often specifically requested by management, as they may require very specific data sets that may not be readily available. For example, the management of a control group may want to ask very specific questions about a possibleProduct Launch.

When creating KPI reports, be prepared to "dig deep." Start by looking at the highest level of data (ie, company-wide sales), but be prepared to see lower levels of data (ie, sales by department, then sales by department and product).

Development of KPI reports

With companies seeming to collect more data every day, sorting through the information and determining which KPIs are most useful and impactful for decision making can become overwhelming. Consider the following steps when you start to assemble KPI dashboards or reports.

Step 1 – Discuss goals and plans with business partners.KPIs are only as useful as users make them. Before compiling any KPI reports, understand what you or your business partner are trying to achieve.

Step 2 – Draft SMART KPI requirements.KPIs should be constrained and tied to specific, measurable, achievable, realistic, and time-limited metrics. Vague, difficult to determine, or unrealistic KPIs offer little or no value; Instead, focus on what information is available to you and what meets the requirements of the SMART acronym.

Step 3: Be adaptable.As you compile KPI reports, be prepared for new business issues to emerge and to pay additional attention to other areas. As customer and business needs change, KPIs must also adapt, with specific numbers, metrics and targets changing in line with operational developments.

Step 4: Avoid overloading users.It can be tempting to overload report users with as many KPIs as you can fit in one report. At a certain point, KPIs become difficult to understand, and it can be harder to determine which metrics are really more important to focus on.

Benefits of KPIs

A company may want to analyze KPIs for various reasons. KPIs help inform management about specific problems; The data-driven approach provides quantifiable information that is usefulstrategic planningand ensure operational excellence.


KPIs help hold employees accountable. Instead of being based on feelings or emotions, KPIs are based on statistics and cannot discriminate against employees. When used correctly, KPIs can help encourage employees as salespeople can realize their numbers are being closely monitored.

KPIs are also the bridge that connects business operations and actual goals. A business can set goals, but without a way to track progress toward those goals, those plans are of little to no use. Instead, KPIs allow companies to set goals and then monitor progress toward those goals.

Limitations of KPIs

There are some drawbacks to consider when working with KPIs. KPIs can take a long time to provide meaningful data. For example, a company may need to collect annual employee data for years to better understand trends in satisfaction rates over long periods of time.

KPIs need to be constantly monitored and closely followed to be useful. A KPI report that is created but never analyzed is useless. Furthermore, KPIs that are not continually monitored for accuracy and adequacy do not encourage beneficial decision making.

KPIs give managers the opportunity to "play" with KPIs. Instead of focusing on actually improving processes or results, managers may be motivated to simply focus on improving related KPIs.performance bonds. Also, quality can degrade when managers focus too much on productivity KPIs, and employees can feel too much pressure to meet certain KPI metrics that just aren't appropriate.


  • It informs management about a company's performance in countless ways.

  • Helps hold employees accountable for their actions (or lack thereof).

  • You can motivate employees who feel positively challenged to achieve goals.

  • It allows a company to set goals and measure progress toward those goals.


  • Potentially spend time collecting data consistently over long periods of time

    (Video) Key Performance Indicators (KPIs) with examples

  • Require continuous monitoring for accuracy and adequacy of data

  • It can encourage managers to focus only on KPIs instead of a broader strategy

  • May discourage employees when KPI targets are unreasonable

What does KPI mean?

KPI is an acronym for Key Performance Indicators, data collected, analyzed and summarized to support decision making. KPIs can be a single calculation or a value that summarizes a period of activity, e.g. For example, "450 sales in the month of October." KPIs alone do not create added value for a company. However, a company can use this information to make more informed decisions about business operations and strategy.

What is an example of a KPI?

One of the most basic examples of a KPI is revenue per customer (RPC). For example, if you earn $100,000 in sales per year and have 100 customers, your RPC is $1,000. A business can use this KPI to track its RPC over time. For example, a company may discover that its RPC has doubled in the last three months. A company may choose to change its company's approach to doing business if it wants to minimize the amount of revenue per customer or continue to minimize the number of customers it generates revenue from.

What are the 5 key performance indicators?

KPIs vary from company to company, and some KPIs are more appropriate for some companies than others. In general, the five most used KPIs include:

  1. sales growth
  2. revenue per customer
  3. Profit margin
  4. customer retention rate
  5. customer satisfaction

How are KPIs measured?

This depends on the KPI actually measured. In general, companies measure and track KPIs using business analytics software and reporting tools. This includes everything from collecting data from trusted sources, storing information securely, cleaning data to standardizing the format for analysis and crunching numbers. Finally, KPIs are often reported using visualization or reporting software.

What makes a good KPI?

A good KPI provides objective and clear information on progress towards an end goal. It tracks and measures factors such as efficiency, quality, timeliness, and throughput, while also providing a way to measure performance over time. The ultimate goal of a KPI is to help management make more informed decisions.

The final result

KPIs provide an effective way to measure and track a company's performance using a variety of different metrics. By understanding exactly what KPIs are and how to implement them correctly, managers can better optimize the business for long-term success.


Key Performance Indicator (KPI): meaning, types, examples? ›

An example of a key performance indicator is, “targeted new customers per month”. Metrics measure the success of everyday business activities that support your KPIs. While they impact your outcomes, they're not the most critical measures. Some examples include “monthly store visits” or “white paper downloads”.

Which is an example of a possible key performance indicator KPI? ›

An example of a key performance indicator is, “targeted new customers per month”. Metrics measure the success of everyday business activities that support your KPIs. While they impact your outcomes, they're not the most critical measures. Some examples include “monthly store visits” or “white paper downloads”.

What is a KPI with example? ›

KPIs may incorporate one or many different metrics to track a business objective. For example, a KPI aligned to a strategic marketing objective may look like this: Objective: Increase the website conversion rate to 20%. Description: The current conversion rate has stalled at 12%.

How do you answer Key Performance Indicators? ›

Follow these steps to choose and implement key performance indicators:
  1. Determine your end goal. ...
  2. Ask key performance questions (KPQs) ...
  3. Identify what information you already have. ...
  4. Collect supporting data. ...
  5. Determine how frequently you'll measure each KPI. ...
  6. Set short- and long-term goals for the KPI.
Jan 31, 2023

What's a good KPI? ›

A KPI should be simple, straightforward and easy to measure. Business analytics expert Jay Liebowitz says that an effective KPI is one that “prompts decisions, not additional questions.” For example, “How many customers did we add this quarter?” is clear and simple.

What is a KPI for an employee? ›

To measure performance in an objective way, you can set key performance indicators (KPIs) for staff members, roles or departments. KPIs are standards or targets that you can track and use as a benchmark to measure success. They also provide employees with focus and clarity over what's expected of them.

What is a KPI checklist? ›

Key Performance Indicators are performance measurements that help you know if your business is reaching its goals and operating optimally. Use a KPI checklist to help you measure, detect and respond to dips in sales and margins and other strategic facets of your business.

What is an example of KPI and metrics? ›

For example, if you're trying to increase customer satisfaction, you might use customer reviews or NPS ratings as a metric and customer retention rate as a KPI. And if you're trying to increase your client's revenue, you might use marketing-qualified leads as a metric, and sales-qualified leads as a KPI.

What is an example of KPI in the workplace? ›

Some common examples of KPIs found in different industries: Increase number of leads and prospects. Cost per lead through each channel. Level of customer engagement.

What is simple KPI? ›

SimpleKPI is an online KPI software solution, providing all the functionality required to create, manage and monitor all of your Key Performance Indicators.

What is your KPI interview questions? ›

  • How can I set meaningful KPIs and performance measures?
  • How do I turn intangible goals into SMART goals you can meaningfully measure?
  • Where can I find example KPIs and performance measures for my industry/business?
  • How do I align KPIs to strategy and cascade throughout the organisation?

What are the 4 performance measures? ›

There are four types of performance measures:
  • Workload or output measures. These measures indicate the amount of work performed or number of services received. ...
  • Efficiency measures. ...
  • Effectiveness or outcome measures. ...
  • Productivity measures.
Apr 13, 2021

How do I write KPI for myself? ›

Here's an example of a personal KPI you could set to learn a new skill at work.
  1. What is my desired goal? ...
  2. Why does this goal matter? ...
  3. How long will this goal take? ...
  4. What metrics am I using to measure my progress towards the goal? ...
  5. How often am I measuring my progress? ...
  6. How will I know when I reached my desired goal?

How do I create my own KPI? ›

Here's how to develop your own sales KPIs in seven steps.
  1. Determine the Key Strategic Objectives. ...
  2. Describe the Intended Results. ...
  3. Understand Alternative Performance Measures. ...
  4. Select the Right Measure(s) For Each Objective. ...
  5. Define Composite Indices as Needed. ...
  6. Set Targets and Thresholds.

What are the 3 recommended KPI categories? ›

The categories are outcome, activity and effectiveness. I'm going to explore each of these types and explain the importance of representing them all in your KPI structure so that they drive execution in your business.

Why is KPI important? ›

KPIs are more than the numbers and metrics you report out weekly - they enable you to understand the performance and health of your business so that you can make critical adjustments in your execution to achieve your strategic goals. Knowing and measuring the right KPIs will help you achieve results faster.

What are 10 ways to improve the performance management process? ›

Our Top 10 High-Performance Management Tips
  • Run 1:1 Meetings. ...
  • Hold Frequent Team Meetings. ...
  • Assess and Evaluate Your Employees. ...
  • Maintain a Routine of Feedback Meetings and Tough Conversations. ...
  • Make Goal Setting a Team Effort. ...
  • Measure Everything. ...
  • Focus on Outcomes, Not Inputs. ...
  • Hire the Right Talent the Right Way.
Sep 7, 2022

What are the two types of KPIs? ›

Types of KPIs
  • Quantitative Indicators. Quantitative indicators are the most straight-forward KPIs. ...
  • Qualitative Indicators. Qualitative indicators are not measured by numbers. ...
  • Leading Indicators. ...
  • Lagging Indicators. ...
  • Input Indicators. ...
  • Process Indicators. ...
  • Output Indicators. ...
  • Practical Indicators.
Jul 7, 2021

Have you ever worked to targets examples? ›

Things like accuracy on the till, customer satisfaction scores i.e. mystery shopping, sales revenue generated, store card sign-ups – that sort of thing? If so, then you have real experience of working towards targets.

How do you describe KPI on a resume? ›

The easiest way to show sales numbers and other KPIs on a resume is through raw figures. Explicitly stating how many new accounts you landed or how much revenue you generated gives recruiters a good sense of the impact you'd have in the new role.

What are KPI based goals? ›

What are KPI targets? KPI targets are a specific set of goals that measure key performance indicators that a team has set. They measure the progress of a company, department, team or individual.

What are the three 3 factors that determine performance? ›

The key factors that influence employee performances are: Training and Development. Employee Engagement. Company culture.

What are the three 3 examples of performance measurement systems? ›

Examples include balanced scorecards, ISO standards and industry dashboards. Key performance indicators (KPIs) are at the heart of any system of performance measurement and target-setting.

What is a 4 point scale performance review? ›

This is more often than not a 5 point rating scale (5– Outstanding, 4– Exceeds Expectations, 3- Meets Expectations, 2- Needs Improvement, 1- Unacceptable).

How many KPIs should an employee have? ›

As already mentioned, the aim is to have two to four KPIs per goal. Some goals will need only one KPI; others will have four. However, exceeding four KPIs is not recommended. But, the question remains – how to choose the right KPIs?

Which is an example of a key performance indicator quizlet? ›

Examples of KPI's include: Marketing ROI, Number of Incremental Sales, Number of Leads, Net Promoter Score, Email Engagement Score.

What is an example of a key performance indicator KPI relevant to budgeting? ›

Here are ten crucial KPIs finance departments should utilize to generate specific insights.
  • Cash Flow. Operating cash flow (OCF) is the daily capital gain from internal activities. ...
  • Current Ratio. ...
  • Fast Ratio. ...
  • Burn Rate. ...
  • Profit Margin. ...
  • Gross Margin. ...
  • Work Capital. ...
  • Stock Turnover.
Apr 12, 2022

What are the type of KPI indicators? ›

Types of KPIs
  • Quantitative Indicators. Quantitative indicators are the most straight-forward KPIs. ...
  • Qualitative Indicators. Qualitative indicators are not measured by numbers. ...
  • Leading Indicators. ...
  • Lagging Indicators. ...
  • Input Indicators. ...
  • Process Indicators. ...
  • Output Indicators. ...
  • Practical Indicators.
Jul 7, 2021

Which 3 of the following are examples of critical success factors? ›

Some examples of critical success factors include increasing market share, attracting new customers, or launching new products. Once you've determined your CSFs, you can set key performance indicators (KPIs), which will establish deliverables and specific criteria to measure project performance.

Which of the following is an example of customer KPI? ›

Customer KPIs include price earnings ratio, net promoter score, and customer retention score.

Which 3 of the following are examples of key performance indicators? ›

All of the above are examples of KPIs, i.e. Average customer satisfaction ratings, number of repeat customers, and sales revenue growth.

How do you create a KPI performance indicator? ›

Here's how to develop your own sales KPIs in seven steps.
  1. Determine the Key Strategic Objectives. ...
  2. Describe the Intended Results. ...
  3. Understand Alternative Performance Measures. ...
  4. Select the Right Measure(s) For Each Objective. ...
  5. Define Composite Indices as Needed. ...
  6. Set Targets and Thresholds.

What are 5 types of indicators? ›

Type of indicators
  • Input indicators. These indicators refer to the resources needed for the implementation of an activity or intervention. ...
  • Process and output indicators. ...
  • Outcome indicators. ...
  • Impact indicators. ...
  • Targets. ...
  • Monitoring. ...
  • IMCI health facility indicators. ...
  • Indicators for assessing infant and young child feeding practices.

What are the 3 different kinds of indicators and examples? ›

Outcome, process and structure indicators

Indicators can be described as three types—outcome, process or structure - as first proposed by Avedis Donabedian (1966). The national safety and quality indicators of safety and quality in health care recommended in this report include indicators of all three types.

What are the 4 requirements to make a KPI? ›

What makes a good KPI?
  • Key Performance Indicators should be aligned with the overall business strategy and outcomes. ...
  • Key Performance Indicators should be actionable. ...
  • Key Performance Indicators should be realistic. ...
  • Key Performance Indicators should be measurable.

What are the 4 components of a KPI? ›

Now that you understand the maximum of KPIs you should have, it's time to think about the 4 main components you'll need to consider when setting any KPI: its Measure, Data Source, Target, and Frequency. The KPI Measure clarifies what you want to measure and how you can measure it.

What are the 4 P's of KPI? ›

For marketers, the best guidance for choosing KPIs comes directly from your Intro to Marketing class: the four P's. For you non-marketers out there, those would be product, price, place, and promotion.


1. What is a KPI? What are KPIs? Key Performance Indicators
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2. What's a KPI? (What a Key Performance Indicator Is + Real, Applicable Examples of KPI's)
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3. How to Develop Key Performance Indicators
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4. What is a KPI? Advertising and Marketing KPIs Explained For Beginners
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5. 18 Key Performance Indicator (KPI) Examples Defined
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