Key Performance Indicator (KPI)

Businesses use key performance indicator (KPI) to determine the success of their progress. KPIs are split up into high level and low level processes. Low level processes would be departmental such as marketing, customer service or sales whereas high level KPIs focus on the performance of the business as a whole.

The measures used include identifying whether the objective is specific, can you measure performance, is the goal actually attainable, is the goal relevant to the organization and what is the time line for the completion of the goal. Analysis of metrics on a web site can help to tell the site owners and administrator if the e-commerce or site purpose is performing optimally.

Goals set in KPI are reviewed periodically at set intervals to determine if any changes need to be made in order to reach the goals set. Through analyzing the KPI businesses can see if they need to tweak their goals or if they are on track.