difference between KPI, Metrics, Measure and Business Metric

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seema.sonkiya
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difference between KPI, Metrics, Measure and Business Metric

Postby seema.sonkiya Fri May 20, 2016 9:08 am

Got this question
3. What is difference between KPI, Metrics, Measure and Business Metrics ?
seema.sonkiya
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Re: difference between KPI, Metrics, Measure and Business Me

Postby seema.sonkiya Fri May 20, 2016 10:16 am

Lets first define each terms first:

Key Performance Indicators: Each organization defines its goals and objectives, mostly related to the finance, sales & marketing, processes etc. These are the organizations Key performance areas to evaluate the organizations health. In other words, KPI are measurable value to know how effectively a organization is achieving its goals and objectives. KPI are defined for critical areas of business.


Example KPIs:
1.Sales KPI: Analyzing the pace at which company sales revenue is growing and use that information in startegic decision making
2. Marketing Sales:The measurement of how marketing is contributing in revenue and sale.

Measure: A measure is an amount of something. Like funds invested in the marketing.
Metric: When we use more than one measure to evaluate something, it is a metric. For example, to know the total cost in getting a new customer, we need 2 measures: 1. Investment in the marketing 2. Number of the customers acquired.

Here the metric is: Total cost of getting a customer.


Business Metrics: A quantifiable measure used to track the status of a specific business process. A business metric is designed for each area of a business and compared with a specific business goal. For example number of contacts acquired by a marketing campaign can be used to track the status of marketing efforts.

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