What is Key Performance Indicators?

Key Performance Indicators (KPI) are a performance metric used to evaluate factors critical to achieving key business objectives. They allow organizations to monitor their progress in achieving any goal. Organizations use KPIs in many facets of their business. They can be used centrally for the strategic vision of the organization, by department or by business persons to evaluate metrics related to their job.

KPIs allow you objectively manage your organization. You can find out what is actually being achieved rather than what seems to be getting achieved. For example, a sales manager can set up a KPI that measures sales appointments booked with a weekly target for each sales team member. If one team member is falling behind on this objective, you are notified with an alert to investigate the matter. Your investigation can help you understand what may be the underlying issue, what can be done to remedy the issue and what can be changed to achieve the goal. There are many other uses of KPIs such as quote to close ratio for sales personnel or monitoring an email campaign’s engagement level for marketers.

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