KPIs and Metrics: Measuring What Matters
Key Performance Indicators (KPIs) are the vital few metrics that tell you whether your business and systems are performing as intended. Choosing the right KPIs — and building the data infrastructure to measure them reliably — is one of the most valuable things we can help you do.
KPIs vs. Metrics vs. Vanity Metrics
- Metrics: Any measurable data point — there are thousands of possible metrics in any system
- KPIs: The metrics directly connected to your strategic goals — the vital few that matter most. Usually 5–10 at most for any given area.
- Vanity metrics: Metrics that look impressive but don't drive decisions — page views without conversion data, follower counts without engagement
Good KPI Characteristics (SMART)
- Specific: Clear definition — no ambiguity about what is being measured
- Measurable: Quantifiable with available data
- Achievable: Realistic targets based on evidence
- Relevant: Connected to a meaningful business outcome
- Time-bound: Measured over a defined period
Common KPI Categories for Digital Products
- Acquisition: Sessions, new users, traffic sources, cost per acquisition
- Activation: Sign-up rate, onboarding completion, time to first value
- Retention: DAU/MAU ratio, churn rate, session frequency
- Revenue: MRR, ARPU, conversion rate, average order value
- Referral: NPS, reviews, referral programme performance