What is a KPI?
Key Performance Indicator: a measurable indicator that shows how far a goal is being achieved.
More details
KPIs are the metrics you actually track and steer on. A good KPI is specific, measurable and directly linked to a business objective. Not every metric is a KPI: page views are interesting, but if the goal is leads, the number of qualified enquiries is the KPI.
For example…
Spotify steers its podcast team on three KPIs: listening time per episode (engagement), monthly active podcast listeners (reach) and conversion from free to premium through podcast ads (monetisation). Not on downloads, because downloads say nothing about whether someone actually listens. Those three KPIs are directly linked to the business objectives of the podcast platform.
Where it goes wrong
The classic mistake is choosing too many KPIs. Once you steer on ten numbers, you are no longer steering on anything: whatever the outcome, there is always one figure that proves you right. Choose one leading KPI per goal, and keep the rest as context.
Also watch out for KPIs you cannot influence. Revenue is an outcome, not a lever. The useful KPI sits one step earlier: the number of conversations, the conversion rate, the average order value. Those are things a decision can follow from.
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