Creation of KPI Web Analytics back to basic series

Although it took me long to continue the series but here’s the next in the Web Analytics Back to basic series.

Here’s what was covered in series before

  1. Web Analytics Back to Basic Series – An Intro to the series
  2. Web Analytics Terminology – An Intro to important Terms and metrics involved in Web Analytics
  3. Web Analytics Technologies – A Overview of Web Analytics Technologies Used.

Key Performance Indicators – KPI

Definition:A KPI is a measure of an essential outcome of a particular activity.

The most important aspect of any performance indicator is relationship between the current and previous measurement. This ratio is what makes them key because then we know when to act upon them. All true KPIs drive action

Without Key Performance Indicators it can be an overwhelming task to share relevant and actionable data with various stakeholders within an organization.

Importance of Key Performance Indicators:

Key Performance Indicators (KPI) are financial and non-financial metrics used to help an organization define and measure progress toward organizational goals. KPIs are used in Business Intelligence to assess the present state of the business and to prescribe a course of action. The act of monitoring KPIs in real-time is known as business activity monitoring. KPIs are frequently used to “value” difficult to measure activities such as the benefits of leadership development, engagement, service, and satisfaction. KPIs are typically tied to an organization’s strategy

What is a good Key Performance Indicators & Steps in Determining Key Performance Indicators

Remember KPI’s are Metrics, but not all metrics are KPI’s. There are no set number for having KPI’s but anything between 5 to 8 should help you summarize (in all aspects) your Business Goals. However there’s no thumb rule and you can have as many.

Thanks to Dennis Mortensen who recently spoke about how a metrics qualifies as KPI, he discusses some of the characterstics for KPI. Here are the 7 of them.

  1. A KPI should echo Organizational Goal
  2. KPI is decided by the Management
  3. KPI Provides Context
  4. KPI Creates meaning on all organizational levels
  5. KPI is based on legitimate data
  6. KPI is easily understood
  7. KPI leads to action

In Addition, creating KPI’s using Top-Down approach always help

More Posts and Articles on KPI’s


The Big Book of KPIs – Eric Peterson

References: Information and articles from

Did i miss any post, article or books? Add on via comments your favorite posts/articles related to KPI

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