Analytics & Attribution
What is KPI (Key Performance Indicator)?
A KPI (Key Performance Indicator) is a specific, measurable metric used to track progress toward a defined business goal, chosen because it reflects meaningful performance rather than just being easy to measure.
Who Is It For?
KPIs are set by leadership in collaboration with the teams responsible for hitting them, since the metric needs to reflect what actually matters to the business.
How Is It Used?
KPIs are used to keep a team focused on outcomes that matter, and to create a shared, objective way to measure whether a program is working.
- Choose a small number of KPIs directly tied to business outcomes, not vanity metrics
- Set clear targets and timeframes for each KPI
- Review KPIs on a consistent cadence rather than only at year-end
- Adjust KPIs as strategy or business priorities shift
Related Terms & Concepts
Frequently Asked Questions
How many KPIs should a marketing team track?
Fewer than most teams start with — a small set of three to five KPIs directly tied to revenue outcomes is usually more useful than a long dashboard of metrics.
What’s the difference between a KPI and a metric?
Every KPI is a metric, but not every metric is a KPI — a KPI is specifically chosen because it reflects progress toward a defined goal, while a metric can simply be any measurable data point.
