By | Nitesh Kumar | Business Analyst | Product & Analytics | Amazon
There is popular saying “Metrics and KPIs are like squares and rectangles: All squares are rectangles, but not all rectangles are squares. Similarly, all KPIs are metrics, but not all metrics are KPIs”
In Analytics arena KPIs & Metrics plays an important role in decision and strategy making for any business. Often both these terms used interchangeably but they aren’t the same and using it correctly can make the difference.
What is KPIs?
KPI stands for “Key performance indicator” , it is a quantifiable value used to track progress against set goals. These provide the direction towards achieving the desired results and make more informed strategic decisions in a given time
Lets understand this by a example :
A company is launching a new product and set a goal of achieving 15% of revenue quarterly . So to achieve the same there will be multiple teams focus on achieving the growth.
Marketing will focus on increase of product communication & awareness and track the traffic to get better understanding of market and focus areas.