Which of the following is not an intangible performance marketing measure or metric

KPI meaning

A Key Performance Indicator [KPI] is a quantifiable measure of performance, which you have decided is important. They are commonly used in business as a way of tracking progress towards goals.

KPIs can be used to measure performance at different strategic levels. For example, a company might choose one set of KPIs to measure its overall business performance. But then use another set of KPIs to measure the performance of different functions in the company, such as Sales, Marketing, Finance, HR and Operations. You can also use KPIs to measure the performance of individuals, projects, campaigns, processes, tools or even machines.

What’s the difference between a KPI and a metric

A metric is a standard [or system] of measurement. Any time you measure anything, you are using a metric, whether that’s monthly revenue, sales conversion rate, number of customers, the average age of your customers, or the number of people in your team with blue eyes.

A KPI is a type of metric, but specifically a metric that can measure performance and has been deemed important.

So, the number of people in your team with blue eyes is a metric, but it doesn’t measure performance and it’s not important.

The average age of your customers might be important information, but it doesn’t measure performance, so it’s not a KPI

Whereas Sales Conversion Rate is a metric, measures performance, and is important. You could call this a KPI.

But, then, Sales Conversion Rate is unlikely to be a KPI if you work in the HR team.

As you can see, KPIs, unlike metrics, carry a degree of subjectivity. They are shaped by the context in which they are being used, and the people or companies who are using them. That’s why you may see some companies use completely different KPIs to other businesses. It doesn’t mean one is wrong and the other is right, it could just be that they work in different contexts, with different priorities.

A useful way to think about it is that metrics represent all your possible measurement options. But KPIs are the performance measures you choose to focus on in order to drive results.

As a result, during the course of your role, you may work with hundreds, if not thousands, of metrics. But if you have developed your KPIs in the right way, you should only need to use a small, manageable number of KPIs regularly for any one process.  

What are some examples of KPIs?

Depending on your business, team or role, there are potentially limitless numbers of KPIs you could choose from. So choosing the right KPIs can be a daunting task.

We have created a repository of over 90 KPIs commonly used by Startups, Ecommerce, Finance, Marketing, SaaS companies, Sales, Mobile Apps, HR and Customer Support – complete with examples, definitions and use cases.

This repository has been used by well over 1 million business leaders since it was launched. Check it out.  

Browse KPI examples

What’s the difference between a KPI, a target, and a goal?

Occasionally you will see people use the term ‘KPI’ interchangeably with ‘goal’ or ‘target’.  

It’s better to treat them as three distinct things.

• A goal is the thing you are aiming to achieve
• A KPI is a measure of performance, you have decided is important
• A target is a set number you are aiming to hit

No doubt, occasionally these three terms overlap seamlessly – especially when your goal is specific and measurable [see SMART goals later in this article]. If your goal is to increase sales revenue by 20% – then perfect – your goal happens to include a KPI [sales revenue] and a target [increase by 20%].

But life is rarely so simple.

One problem with conflating these three terms is that it doesn’t allow for goals which need to be measured with more than one KPI. Or where no one single KPI or target perfectly represents your goal. Or where the goal is intangible.

In these situations, instead of using a direct measure, you would use several indirect measures [sometimes referred to as ‘proxy measures’].

For example, say your goal was to improve employee satisfaction [a slightly intangible goal], you would likely need to use several indirect measures, such as the results from an employee engagement survey and the average turnover rate. You could structure your goal, KPIs and targets like this:

Goal: Improve employee satisfaction

• KPI: Employees say they are satisfied in their role. Target: 90%
• KPI: Employees say they see a long-term future here. Target: 80%
• KPI: Avg. Turnover rate. Target: