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What is KPI and why measuring KPI (key performance indicators) is important Video

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In this tutorial I explain what is KPI. KPI stands for key performance indicators. Every business has key performance indicators. In fact, even smaller parts of a business have their own KPI.

For example, my very own YouTube channel has KPI. The key performance indicators for a YouTube channel are views, minutes spent watching, revenue, and subscriber growth. On a different platform, the KPI might be different as well.

For example, for a blog, the key performance indicators might be visitors, page views per visitor, and conversion to whatever you want people to do on the blog.

Your business or startup has its own KPI. The key performance indicators for a business or startup are typically related to growth. Some of the important things to track are customer growth, revenue growth, and profit growth. Strategies are typically created to increase the growth of the revenue, profit and customer growth kpi metrics. Those strategies have their own KPI. So you must figure out what those key performance indicators are for your business, and focus on what it will take to grow those metrics.

In an internet startup, the key performance indicators are usually very tied to growth of users and revenue. User growth is almost always the highest priority. And the growth of revenue is almost always the second biggest priority. The reason for that is that startups which have high growth can almost always raise more money from investors. So as long as they continue to grow, revenue and profits are often not as important.

For more traditional types of small businesses, revenue and profit are often more important because those businesses must earn a profit that will be reinvested into those businesses and used to pay rent and employee salaries.

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