Key Performance Indicators (KPI) are specific measures used to evaluate the performance of a company, a project, a process or any activity in relation to its pre-established objectives and goals. They provide a quantifiable and objective way to measure measure progress toward those objectives and evaluate the success of a strategy or initiative.
KPIs can vary depending on the industry, sector and the specific needs of each organization, but they generally meet certain criteria:
- Relevance: They must be directly related to the objectives and goals of the organization.
- Measurement: They must be quantifiable and based on objective data that can be measured consistently.
- Temporality: They must be able to be measured over a specific period of time to evaluate performance over time.
- Action: They should provide useful information that allows decision makers to identify areas for improvement and take corrective action if necessary.
KPIs can cover a wide range of areas and aspects of the business, such as sales, marketing, customer service, operations, human resources, finance, among others. Some common examples of marketing-related KPIs include:
- CTR: Click Through Rate
- CPA: Cost Per Acquisition
- CPC: Cost Per Click
- CPL: Cost Per Lead
- CPM: Cost Per Thousand
- Churn Rate
- Bounce Rate
