Key Performance Indicator (KPI)

A key performance indicator is a metric used to measure the success of a business or individual in meeting specific goals. KPIs can be financial, such as profitability or revenue growth, or non-financial, such as customer satisfaction or employee retention. The important thing is that KPIs are quantifiable and relevant to the goal being measured. For example, if a company’s goal is to increase sales by 20%, then a relevant KPI would be percentage of sales growth.