Key performance indicators include but are not limited to the profit, the profit margin, the return on equity, the return on investment and the current ratio, notes Klipfolio. Further examples range from the customer retention rate and the customer satisfaction rate to the number of followers and the number of likes on social media sites.Continue Reading
Key performance indicators are numerous because different businesses have different goals, meaning that they need different measurements with which to analyze the extent of their progress towards them, according to About.com. As a result, something can be considered a key performance indicator so long as it can be measured using numbers and can be considered crucial towards the business's success.
For example, customer opinion is not a key performance indicator because it cannot be measured using numbers, but it can be broken down into measurements such as the customer satisfaction rate and the customer retention rate, which can be considered key performance indicators for some businesses. Likewise, the number of followers and the number of likes on social media sites can be considered key performance indicators by businesses that market using that medium, but not by manufacturers that find their customers exclusively through trade expos and trade shows, as noted by About.com.Learn more about Investing