Key performance indicators are data that show how good you are at achieving your business objectives. Meanwhile, metrics track the state of your business processes. With KPIs, you'll know if you're achieving your overall business objectives, while metrics focus on the performance of specific business processes. Indicators are calculated measures of performance that consist of a set of different metrics.
They are also called key performance indicators or simply KPIs. A restaurant owner wants to know if a table can seat six people. It indicates its size, but it does NOT measure it (using a universally accepted system, whether metric, imperial or any other system). The problem is that they are different, or rather, you can gain a lot if you recognize that they are different things and, therefore, it offers greater clarity and utility when choosing, designing and using these measures, performance indicators and key performance indicators (KPIs).
The example above was created with a professional dashboard generator and is the perfect combination of metrics and key performance indicators needed to track the ROI of your marketing actions. It is important to differentiate between metrics and indicators to know exactly when and how to use each of them in favor of the business. The last tip for measuring metrics and key performance indicators the right way is to set achievable goals. An indicator is a qualitative or quantitative factor or variable that provides a simple and reliable means of expressing achievement, the achievement of a goal, or the results resulting from a specific change.
Every day, more and more companies use BI dashboard software to obtain a centralized view of their most important indicators in an interactive and intuitive way. This is because managers share metrics and indicators with all employees and thus it is possible to have a team that is more committed to the result. Basically, key performance indicators or KPIs measure performance or progress based on specific business goals and objectives. We have discussed the definition of key performance indicators and metrics and analyzed the differences between business metrics and KPIs.
