Key Performance Indicator (KPI)

A key performance indicator, or KPI, is a measure selected to track progress toward a defined objective. A local service business might choose qualified estimate requests as a KPI if its goal is to increase suitable new inquiries. Website traffic is a metric, but it becomes a useful KPI only when it directly reflects what the business is trying to achieve. An owner should define the measurement method, reporting period, and any limits before treating a number as evidence of success. For example, a tracked click on a phone number does not prove a call connected or a job was booked. A short list of well-defined KPIs is often easier to act on than dozens of unrelated dashboard numbers.