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K

Key Performance Indicator (KPI)

Definition

A KPI is a quantifiable measure to evaluate the success of an organization or a specific activity in which it engages.

A
Airbridge
May 20, 2024·2 min read

Table of Contents

  • What is a KPI?
  • Why is a KPI important?
    • KPI helps organizations set clear goals and objectives:
    • KPI helps organizations monitor progress:
    • KPI helps organizations make data-driven decisions:
    • KPI helps organizations improve performance:
  • What KPIs should mobile marketers consider tracking?

What is a KPI?

A key performance indicator (KPI) is a measurable value which shows how effectively an organization achieves its key business objectives. KPIs should be specific, measurable, attainable, relevant, and time-bound. In other words, a good KPI should be clearly defined, able to be quantified, achievable, aligned with the organization's goals, and measured over a specific period of time.

KPI tracking allows organizations to monitor progress toward their goals, identify areas for improvement, and make data-driven decisions. As a result, it is a crucial tool for evaluating the effectiveness of business strategies and for identifying opportunities for optimization and growth.

Why is a KPI important?

KPI helps organizations set clear goals and objectives:

By identifying specific, measurable, attainable, relevant, and time-bound (SMART) KPIs, organizations can set clear goals and objectives for themselves. This helps to ensure that everyone is working towards the same objectives and that progress can be easily tracked.

KPI helps organizations monitor progress:

By regularly tracking and measuring KPI, organizations can monitor their progress towards their goals and identify areas for improvement. This can help organizations to make timely adjustments to their strategies and tactics to stay on track.

KPI helps organizations make data-driven decisions:

By analyzing KPI data, organizations can make informed, data-driven decisions about their business. This can help organizations to optimize their operations, improve efficiency, and increase profitability.

KPI helps organizations improve performance:

By setting and tracking KPIs, organizations can identify and address areas of underperformance. This can help organizations to improve their overall performance and achieve their goals more effectively.

What KPIs should mobile marketers consider tracking?

Below are some KPI metrics that a mobile marketer should consider tracking:

  • App downloads
  • App retention rate
  • App engagement
  • Cost per install (CPI)
  • Return on investment (ROI)
  • Return on ad spend (ROAS)
  • Conversion rate
  • Click-through rate (CTR)
  • Cost per click (CPC)
  • Customer lifetime value (LTV)
  • Customerer acquisition cost (CAC)

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