KPI stands for Key Performance Indicator, which is a measurable value used to evaluate the success of a specific business objective. KPIs help businesses to track their progress towards achieving their goals and can be used to identify areas for improvement. KPIs can vary depending on the business objective being measured and can range from financial metrics such as revenue and profit margins to customer metrics such as customer acquisition cost and customer retention rate.
In order to effectively measure and track KPIs, businesses need to establish clear targets and determine how they will collect and analyze data. It's important to choose KPIs that are relevant to the business objective being measured and to ensure that they are aligned with overall business goals. KPIs should also be specific, measurable, achievable, relevant, and time-bound (SMART).
