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What is a Key Performance Indicator?

A key performance indicator is a measurable value that indicates the success (or failure) of a company regarding its goals. High-level KPIs show the overall performance of a business, while low-level KPIs reflect the outcome of specific departments, projects, or campaigns.

Why are KPIs important?

KPIs are necessary to evaluate high-level strategies as well as individual actions regarding their ability to contribute to a company’s goals. They are helpful information in decision-making processes. Based on KPIs, stakeholders can identify problems and make decisions about continuing, canceling, and funding single measures.

Not every Metric is a KPI

App owners can measure tons of different metrics, but not every metric helps evaluate business success properly. For instance, the number of messages sent between players in a multiplayer game is irrelevant. Key performance indicators have to be relevant to business goals. Otherwise, they create confusion instead of making decisions easier.

Examples for KPIs

Cost Metrics

Revenue Metrics

Conversion Metrics

 

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