Nov 2, 2025

KPI

• A KPI is short for Key Performance Indicator and is a measurable value that shows how effectively a business, team, or individual is achieving key objectives.

How do I remember it?

• Think of KPI as a “speedometer” for your business, it shows if you’re moving fast enough toward your destination! (Goal)

K = Key (most important)

P = Performance (how you’re doing)

I = Indicator (a measurable signal)

Real world example

• Imagine you manage an online store.

Your goal: Increase sales.

• Possible KPIs:

Monthly Revenue → How much money you earn each month

Conversion Rate → % of website visitors who buy something

Customer Retention Rate → % of customers who come back

If your conversion rate goes up from 2% to 4%, your KPI shows improvement meaning your marketing or website changes are working