Business KPIs (Key Performance Indicators) are a focused subset of metrics that measure progress toward strategic goals. Unlike general metrics, KPIs are outcome-driven and decision-critical.

Examples include:

• Monthly Recurring Revenue (MRR)

• Customer Churn Rate

• Net Revenue Retention

• Conversion Rate

• Customer Acquisition Cost

• Average Resolution Time

KPIs answer high-level questions like:

• Are we growing?

• Are customers staying?

• Are we profitable?

• Are operations efficient?

Good KPIs are:

• Clearly defined

• Aligned with business objectives

• Actionable

• Time-bound

• Measurable

From a BI perspective, KPIs are often displayed prominently on dashboards using scorecards, gauges, or trend indicators. They may also include targets, thresholds, and variance indicators.

KPIs should evolve as the business matures. Early-stage startups track growth and activation, while mature companies focus more on efficiency and retention.

A common mistake is tracking too many KPIs. This dilutes focus and makes prioritization difficult. Strong organizations limit KPIs to what truly drives outcomes.

In analytics systems, KPIs must be governed, documented, and consistently calculated to maintain trust.