KPI (key performance indicator)

A key performance indicator is a measurable value tied to an objective. Good KPIs are few, clearly defined, linked to business outcomes and agreed before work starts. Examples include qualified leads, revenue from a channel or customer retention. Vanity metrics such as raw follower counts can distract unless connected to a goal. In agency contracts, KPIs shape reporting and sometimes performance bonuses, so define how each is measured and from which data source. Limit the list to the few measures that would change a decision, and review them regularly instead of adding new ones with every report.