What is KPI (Key Performance Indicator)?


KPI (Key Performance Indicator)

KPI (Key Performance Indicator) is an indicator of success in a certain activity or in achieving certain goals. We can say that KPI is a quantitatively measurable indicator of the results that are achieved. KPIs allow you to monitor the business activity of employees, departments and the company as a whole and bring the company to a new level.

For instance, some online stores set up a goal to increase site traffic by 25% in the next 6 months. Here, KPI might be the number of unique visitors and the frequency of visits. Usually, one goal has many performance indicators.

Selecting the right KPI depends on the industry. In e-commerce, KPIs can be applied to various business operations: manufacturing, sales, marketing, customer service and project management.

KPI management can be done using a dashboard and reporting software (Klipfolio, SimleKPI, Scoro, Datapine, etc)

To get the best result from using KPI, you need to consider the following:

  • Define precise goals
  • Review it once a week/month
  • Make sure it is actionable and achievable
  • Update it according to the changing needs of your business.

Here are some ecommerce KPIs: 

  • Gross profit
  • Average order value
  • Conversion rate
  • Shopping cart conversion rate
  • Bounce rate
  • Churn rate
  • Repeat purchase rate
  • Revenue per click
  • Average profit margin, etc.


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