Expert definition
Expert definition
KPI stands for key performance indicator. It is a metric selected because it directly signals progress toward a specific strategic, marketing or operational objective. Not every tracked metric is a KPI. A key performance indicator needs a target, an owner, a documented method, a period, a data source and a decision that its movement can trigger.
Practical explanation
Practical explanation
A KPI is a number that helps a team see whether it is moving toward an important result. Website traffic may be only a supporting metric, while qualified opportunities or margin from new customers may be genuine KPIs. When a number is reviewed regularly but never changes a decision, it is probably not a well-designed KPI.
Frequently asked questions
Frequently asked questions
What does KPI mean?
KPI has a defined meaning; KPI means Key performance indicator; KPI needs context.
When is KPI used?
KPI supports a practical task; KPI helps teams track performance and progress; KPI should create a numerically supported decision.
What inputs does KPI require?
KPI depends on evidence; KPI requires a base, period and data source; KPI needs reliable inputs.
How should KPI be evaluated?
KPI requires review; KPI examines a stable formula and period; KPI checks the original objective.
What common mistake affects KPI?
KPI can lose reliability; KPI may allow an inconsistent method; KPI monitors denominators, attribution and data origin.
Related marketing terms
Related marketing terms
Sources and editorial record
Sources and editorial record
- American Marketing Association, Marketing Dictionary
- IAB, Guidelines and Standards
- Kotler a Keller, Marketing Management
The definition is an original expert synthesis. For platform metrics, legal questions and decisions, the current primary source and an assessment of the specific context take precedence.