Define Your KPIs

Do you know what a KPI is? Do you know what your KPIs are?

Fractal Solutions LLC
The Startup
3 min readJul 4, 2018


KPIs, Key Performance Indicators, are used to measure the performance of a team’s processes and, with this information, know if goals are being achieved.

It is a technique widely used by executives and managers in their management since it enables them to communicate company development to other employees.

Utilizing KPIs…

  • Employees become more aware and involved in the mission.
  • Efforts align with strategies.
  • It is possible to quantify performance and help workers understand how their activities contribute to the overall success of key factors.
  • Leaders can base analysis and decisions on quantitative data.


Let’s use a digital marketing scenario…

The measurement of results is extremely important for those who invest in digital marketing. The use of efficient tools for this is always welcome. When carrying out a digital marketing campaign, there is a need to visualize the goals for each action. In this case, KPIs are used as performance indicators for each of these goals.

KPIs allow immediate follow up in the course of actions and provide information that facilitates understanding the progress of a campaign, even by those with little technical knowledge about digital marketing.

KPIs can also be useful to provide campaign data to a client who hires the services of an agency. When properly related to the objectives of the company, it may even point out where there is a failure or weakness to address.

The Difference Between KPIs and Metrics

To understand the importance of KPIs it is also important to note the difference between KPIs and metrics, since both are indicators.

Metrics point to a gross number.

For example, number of visitors, bounce rate, and traffic source.

KPIs inform you of results that emerge from metrics.

KPIs demonstrate if a certain goal of conversion was reached or not.

Examples of KPIs and the metrics used:

  • Conversion rate: total sales ÷ total site visits
  • Average sale: total revenue ÷ total sales
  • Index of engagement: total visitors that interacted with page ÷ total visitors
  • Social influence index: total liked or retweeted posts ÷ total posts

Performing a correct analysis and having a proper understanding of both metrics and KPIs is a critical step in making decisions about a campaign and other plans.

If poorly performed, wrong conclusions can be drawn and they can compromise the development of a brand.

On the contrary, if properly performed, KPIs can contribute to the success of operations and strengthen a company’s network.

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