# What is KPI – Key Performance Indicator?

What is KPI – Key Performance Indicator? A quantitative measure reflecting success toward business goals. eCommerce KPIs: CR, AOV, LTV, CAC, ROAS, Churn Rate.

## How it works in practice

A good KPI drives action. 'Sales' is not a KPI — it's an outcome. 'Product page CR' is a KPI because you can act on it. When everything matters, nothing matters.

## Related metrics

- Dashboard — KPIs are displayed on the dashboard
- OKR — another framework for managing metrics
- Benchmark — KPIs are measured against a benchmark
- North Star Metric — a single KPI representing business health

## Common misconception

'More KPIs means more control.' The opposite is true. A store with 40 KPIs can't focus. Amazon operated for years with a single North Star metric.

## How to fix it

KPIs don't reflect reality? (1) Check they're measurable (available in GA4), (2) check they're actionable, (3) remove KPIs that look good but don't drive decisions, (4) every KPI needs an owner, a target, and a frequency.

## Real-world example

A clothing store with 35 KPIs — every marketing meeting took 3 hours. They narrowed it down to 6: CR, AOV, CAC, LTV, Repeat Rate, NPS. Meetings dropped to an hour, revenue rose 28% within a quarter.

## Where to start

Define 5-7 core KPIs now and review them weekly. Rule: every KPI needs an owner, a target, and a frequency.

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Category: Analytics · From the [Jimmy OS KPI Glossary](https://jimmy-os.com/glossary/kpi.md) · Source page: https://jimmy-os.com/glossary/kpi/kpi-key-performance-indicator