Key performance indicator

A key performance indicator, or KPI, is a measure deliberately selected to assess progress towards an important objective. Not every available counter is consequently a KPI. Amazon identifies advertising cost relative to ad revenue as one possible KPI and stresses selecting measures in relation to campaign objectives and other metrics.[1] The objective gives the measure its management significance.

For a store pursuing profitability, a margin-oriented indicator may be more useful than traffic or gross sales alone. Document each KPI's owner, calculation, reporting period and the decision prompted by a deviation. Add a guardrail where appropriate, such as returns alongside revenue growth. This helps avoid improving the chosen number while the underlying business objective deteriorates.