Key performance indicators (KPIs) are strategic metrics used to gauge business success. They’re the most important data points that you track to measure whether your business is on track to meet goals or at risk of missing them.
The right KPIs can serve as a guiding light for your business, supporting financial strategy, business development, marketing initiatives, customer service, and more. They’re designed to help you set business goals and meet them on your preferred timeline, so you’re not just spinning your wheels doing the same bare minimum to cover costs and never grow.
The best way to understand what KPIs are and how they work is to see them in practice. So, we’ve broken down 25 examples of KPIs, from the key metric to the value a business might apply to it to monitor success.
Financial KPIs
These KPIs are crucial for understanding the organization’s overall profitability and financial stability.
Metric
KPI
Example
Net Profit Margin
Profitability Ratio
Increase Net Profit Margin to 15% or higher by the end of the fiscal year.
Customer Acquisition Cost (CAC)
Cost Efficiency
Reduce the average Customer Acquisition Cost to below $50 per new customer within the next quarter.
Customer Lifetime Value (CLV)
Customer Value Growth
Achieve an average Customer Lifetime Value of at least $500 per customer within 18 months.
Operating Cash Flow
Liquidity
Maintain positive Operating Cash Flow of over $1,000,000 in every reporting period.
Return on Investment (ROI)
Investment Effectiveness / Resource Management
Ensure that all major marketing campaigns generate an ROI of 3:1 or better.
Sales KPIs
These KPIs help understand a sales team’s effectiveness to give you greater insight into sales strategy and efficiency.
Metric
KPI
Example
Sales Growth Rate
Year-Over-Year Revenue Growth
Achieve a minimum 20% Sales Growth Rate for the current fiscal year.
Sales Pipeline Coverage
Pipeline Health Ratio
Maintain a Sales Pipeline Coverage ratio of at least 4:1 relative to the quarterly sales target.
Win Rate
Sales Team Effectiveness
Increase the overall Win Rate on qualified opportunities from 25% to 30% by year-end.
Average Deal Size
Revenue Quality Optimization
Raise the Average Deal Size to over $75,000 within the next six months through strategic pricing and product bundling.
Sales Cycle Length
Time-to-Close Efficiency
Reduce the Average Sales Cycle Length for enterprise deals from 90 days to 75 days.
Marketing KPIs
These KPIs assess the quality of your marketing initiatives and inform branding and marketing investment decisions.
Metric
KPI
Example
Website Conversion Rate
Customer Acquisition Growth
Increase the overall Website Conversion Rate for key landing pages from 4% to 6% within the next 90 days.
Lead-to-Customer Ratio
Marketing Quality Score
Improve the Lead-to-Customer Ratio from 5:1 to 4:1 (meaning one customer for every four leads).
Marketing Qualified Leads (MQLs)
Pipeline Volume
Generate a minimum of 500 Marketing Qualified Leads (MQLs) each month.
Organic Search Traffic
Brand Visibility & Authority
Achieve a 40% Year-over-Year growth in non-branded Organic Search Traffic.
Cost Per Acquisition (CPA)
Campaign Cost Efficiency
Reduce the average Cost Per Acquisition (CPA) across all paid channels to below $150.
Customer Service and Success KPIs
These KPIs are designed to measure how effectively you keep customers satisfied, loyal, and supported, which directly impacts long-term revenue.
Metric
KPI
Example
Customer Churn Rate
Customer Retention
Reduce the Customer Churn Rate to below 5% quarterly.
Net Promoter Score (NPS)
Customer Loyalty
Achieve an NPS of 50 or higher by the end of the next reporting cycle.
First Contact Resolution (FCR)
Customer Service Efficiency
Maintain a minimum First Contact Resolution (FCR) rate of 85%.
Average Response Time
Customer Service Efficiency
Ensure the Average Response Time for all support tickets is under 30 minutes.
Customer Satisfaction Score (CSAT)
Customer Service Quality
Maintain a 90% or higher overall CSAT.
Human Resources (HR) KPIs
These KPIs measure the health, efficiency, and productivity of the workforce, which directly impacts overall business performance.
Metric
KPI
Example
Employee Turnover Rate
Talent Retention
Reduce the overall Employee Turnover Rate to 10% or below annually.
Time-to-Hire
Recruitment Efficiency
Lower the average Time-to-Hire for critical roles to under 35 days.
Training Effectiveness Rate
Development ROI
Achieve an 80% or higher post-training knowledge retention/application score.
Employee Engagement Score
Workforce Commitment
Increase the annual Employee Engagement Score from 72 to 78 or higher.
Absenteeism Rate
Workforce Reliability
Maintain the monthly Absenteeism Rate below 1.5%.
FAQs
Yes. While it might seem smart to measure every possible metric of success, too many KPIs can lead to analysis paralysis. There’s a loss of focus when everyone is being pulled in so many different directions, which can lead to wasted resources and poor communication between teams.
Most organizations focus on 3 to 5 core KPIs per major business function.
A dashboard is a visual display of key business data, and it’s the primary tool for communicating and tracking KPIs.
Your KPIs should primarily be based on your own historical data and strategic goals, but keep industry benchmarks in mind to help you understand how you’re tracking against the competition.
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