KPI – key performance indicators – should be tracked for one reason: to ensure your company is meeting its goals. Your KPI helps you keep your focus on the Big Picture.
A KPI is a metric that is tied to a target. For example, if your target revenue is $10,000 per week, your Revenue KPI is a ratio of your actual revenue to that target.
KPIs show your business’ performance through measurable data points that reflect deviations or adherence to your desired business pathway. KPIs are usually integrated into a Dashboard which provides a graphical view of your success.
Let’s take a closer look at some of the advantages of KPI and Business Analytics for your business.