KPI (Key Performance Indicator)
A KPI is a metric that meaningfully tracks progress toward a strategic outcome. Not every metric is a KPI — KPIs are the small set that actually drive decisions.
What it is
A KPI is the metric a team or business has decided is materially important to its success. "Key" is the operative word — a typical dashboard might have 20 metrics but only 3–5 KPIs. KPIs sit at the top of dashboards, get reported to leadership, and trigger action when they move.
Examples of marketing KPIs by goal
- Growth-focused: New customer count, MRR added, qualified pipeline created
- Efficiency-focused: CAC, LTV:CAC ratio, payback period, blended ROAS
- Brand-focused: Branded search volume, share of voice, direct traffic, NPS
- Retention-focused: Churn rate, expansion revenue, repeat-admit rate
How to pick KPIs
Three rules: (1) it must be measurable repeatedly, (2) it must connect to a strategic outcome (revenue, profit, retention), (3) it must be actionable — when it moves, you know what to do.
Frequently asked questions
Can a vanity metric be a KPI?
Generally no. Impressions, follower count, website traffic — these are inputs, not outcomes. Promote them only if they ladder up clearly to outcomes.
How many KPIs is too many?
5–7 per business level (executive, departmental, team). More than that and they stop driving focus.
Should I have leading and lagging KPIs?
Yes. Lagging KPIs measure outcomes (revenue, churn). Leading KPIs predict them (pipeline created, demos booked, lead velocity). You need both.
