Key Performance Indicators (KPI’s)
Ron explains it all in just 60-seconds.
So what are KPI’s, really?
A Key Performance Indicator (KPI) is any measurable number in your operation that shows how well your business (or a part of it) is doing.
It’s not just any number you can find. It’s any key number that actually relates to how you are doing and if you’re moving in the right direction. They will vary by business and can change over time depending on what’s important to you at that point.
Revenue growth? That’s a KPI. Customer ‘churn’? That’s one too. Email open rate? Could be a KPI, if that’s what drives results. The trick is not just tracking numbers, but tracking the right numbers.
Good KPIs are specific, measurable, and lined up with your actual goals. Watching 50 different dashboards with lots of information doesn’t usually make you smarter. It just makes you tired.
Pick the numbers that matter. Then actually pay attention to them.
Your business doesn’t need more data — it needs the right data.
How people actually use it in a sentence...
“Emily said her primary KPI was if she was actually engaging her customers… But she couldn’t define it, measure it, or explain why it mattered. So… no, it wasn’t.”
Did you know...
A 2023 survey by Klipfolio found that nearly 60% of small business owners track more than 10 different KPI’s. Most admit they don’t actually use half of them.
The problem isn’t the actual data, it’s drowning in it. The best KPIs are the ones that make decisions easier, not dashboards and reports busier.
Want the textbook definition? Check out KPI’s on Investopedia.com