Key Performance Indicators
Key performance indicators, or KPIs, are the business metrics most critical to a business that measure performance over time for a certain goal.
Key performance indicators are used in organizations to measure success and identify areas for improvement. These indicators are usually quantitative, and they can be used to answer questions such as "How much money did we make?" or "How many customers did we serve?".
The first step in setting up KPI is to determine what you will be measuring. It is important to decide what the target is and how it will be measured. The next step is to set targets for the KPI and create a baseline with which to compare progress over time.
KPIs are important for any organization because they help them understand what is going on and how they can improve their performance. A good way to set up KPIs is by starting with the company's vision, mission, and goals.
KPIs can be used to measure a number of things, including:
- The quality of service provided by the company
- The effectiveness of marketing campaigns
- The productivity of employees
- The satisfaction level of customers