What are KPIs?

 

KPIs (Key Performance Indicators) help evaluate a company’s progress in moving toward a key objective. These are used at all levels, helping executives, managers and employees identify where improvements can be made. KPIs lead to better decisions and more effective goal execution. The most essential KPI is Revenue, of course, but many others can be utilized based on a company’s major goals.

For instance, a sales team might set a goal to increase its productivity. In this case, its KPIs might look something like this:

 

KPI (1): Sales Revenue

KPI (2): Win Ratio

KPI (3): Average Deal Size

 

If (1) the Sales Revenue is high and (2) the Win Ratio is high, but the (3) Average Deal Size is too low, this last area may require more managerial commitment.

KPIs must be selected so that they are in alignment with a company’s strategy and goals (OKRs) as well as being relevant to the industry, department, team and skillset of the individual employee.

KPIs are wonderful tools, but only when quantifiable goals are set in advance. This is where Objectives and Key Results (OKR) come in handy. These are essential tools for goal definition. To learn more, check out this explanation of OKRs along with some examples. Note that each company will use a different set of OKRs and KPIs to measure its success.

While KPIs evaluate success, there is no one-size-fits-all. Below are some examples based on more senior roles to give you an idea of what KPIs are. For more detailed examples, please reach out to us and we’d be glad to help.

 

KPIs (Key Performance Indicators)

Examples

Sales KPIs

  • Sales
  • Win Ratio
  • Subscriptions

Marketing KPIs

  • Qualified Leads
  • Conversion Rate
  • Social Media Followers

Public Relations / PR KPIs

  • Web Coverage
  • News Coverage
  • Share of Voice

Online Marketing KPIs

  • Average Cost Per Lead (CPL)
  • Number of Conversions
  • PPC or AdWord CTR
  • Website or Landing Page Conversion Rate

Content Marketing KPIs

  • Recurring Visitors
  • Blog Comments
  • Blog ‘Shares’

Partner Marketing KPIs

  • Partner Generated Revenue
  • ROI Per Partner
  • Partner Market Share

Human Resources / HR KPIs

  • Employee Satisfaction Index
  • SCR (Salary Competitiveness Ratio)
  • Retention Rate

Engineering KPIs

  • Sprint Points
  • Progress vs. Schedule (Deadlines Successfully Met?)
  • P-O or P-1 Active Bugs in Production
  • Rework
  • Architecture Improvements

Quality Assurance / QA KPIs

  • Number of P-0 or P-1 bugs in product
  • Covered Requirements
  • Passed Tests

Product Management KPIs

  • Product Engagement Rate
  • Customer NPS from Product Feedback
  • Customer Retention
  • Customer Complaints

Customer Success KPIs

  • Customer NPS
  • Customer Satisfaction (CSAT) Score
  • Customer Retention Rate
  • Customer Churn

Customer Support  KPIs

  • Average Response Time
  • Average Resolution Time
  • Incident Rate

Customer Retention KPIs

  • Customer Satisfaction
  • Net Promoter Score
  • NPS
  • CSAT Score

Finance KPIs

  • Working Capital
  • Operating Cash Flow
  • Payroll Headcount Ratio

Operations KPIs

  • Labor Utilization (employee ROI)
  • Project Schedule Variance (missed deadlines)
  • Rework (work that had to be done again)