What Is a KPI and Why Does It Matter?
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Not every number on a dashboard is a KPI. A metric becomes a useful KPI when it measures progress toward a specific business goal. For example: • Website visits are a metric. • Conversion rate against a target can be a KPI when the goal is to increase purchases. Before choosing a KPI, define: 1. The business objective 2. The exact formula 3. The baseline 4. The target 5. The timeframe 6. The owner and review frequency Then test it: Is it relevant, clearly defined, measurable, and actionable? Com
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Not every number on a dashboard is a KPI. A metric becomes a useful KPI when it measures progress toward a specific business goal. For example: • Website visits are a metric. • Conversion rate against a target can be a KPI when the goal is to increase purchases. Before choosing a KPI, define: 1. The business objective 2. The exact formula 3. The baseline 4. The target 5. The timeframe 6. The owner and review frequency Then test it: Is it relevant, clearly defined, measurable, and actionable? Com
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