KPI

Key performance indicator, generally called KPI, is a quantifiable value that helps a business or organization track progress toward its goals. KPIs are used to evaluate the success of a business or project by measuring performance against specific objectives.

Some of the most commonly used KPIs for eCommerce businesses include financial KPIs (e.g., revenue, GMV, profit), operational KPIs (e.g., shipping provider, payment method), consumer behavior KPIs (e.g., average order value, conversion rate), and marketing performance KPIs (e.g., SEA, SEO, and website traffic).

The process of setting, measuring and evaluating key performance indicators is a data-driven one. Companies that track KPIs collect data, store it, and clean it before deriving insights from it. The information KPIs provide are used to make strategic decisions for output and growth.