What are key performance indicators (KPIs)?
Key performance indicators (KPIs) are measurable metrics that your organization can use to assess the progress, performance, and success of your business activities. KPIs are selected based on their relevance to specific objectives and can vary widely depending on your industry, department, or function. In general, they serve as benchmarks that help organizations understand how well they are meeting their targets and whether they need to adjust or make improvements.
For example, let’s say you’re managing a partner ecosystem for a SaaS company. To track success, you could set KPIs like:
- The number of new customers acquired through your partners
- The revenue generated by each partner
- The upsell and cross-sell rates of your partners
- The rate of partner churn or partner satisfaction scores
Common types of KPIs include financial metrics (such as revenue, profit margin, and return on investment), operational metrics (such as production efficiency and quality control), marketing metrics (such as customer acquisition cost and conversion rates), and performance metrics (such as sales per employee or partner engagement).
Overall, though, KPIs should be measurable, based on data, relevant to your business goals, and time-bound over a specific period. In a partner program, choosing the right KPIs can help you understand which partners are performing well, who might need support, and whether your partnership strategy is paying off. The most effective KPIs are clear, focused, and directly tied to your strategic goals. Always remember, what gets measured gets managed!