What Is a KPI?

A KPI, key performance indicator, is a number you check because it tells you whether the business is on track. Pick ones tied to profit: a campaign returning four times its cost in revenue loses money below 25% gross margin.

The number: Marketing ROI Calculator.

What goes on a KPI dashboard

A KPI dashboard is one page showing your three to five KPIs side by side. For a small business that is usually enquiries, conversion rate, average order or job value, cost per customer and margin-true ROI.

Show each number against last month and the same month last year, and update it on the same day each month. A spreadsheet does the job. Free tools such as Google Looker Studio can pull in website figures once the basics are steady.

What it means in practice

The mistake is tracking what is easy to count: followers, opens and impressions. They rise while the bank balance does not.

The move is three to five KPIs that link to revenue, such as enquiries, conversion rate, cost per customer and margin-true ROI, checked on the same day each month.

Whito stage: Build. Set them once you have a steady flow of enquiries to measure.

The numbers to hold onto

Where to go next

Related: Advertising ROI, Cost per lead, Conversion rate optimisation

All terms · The files behind the numbers