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Key Performance Indicator (KPI)

[ kee puh-faw-muhns in-duh-kay-tuh ]

It is a quantifiable value that shows how well a company performs and is used to monitor and measure effectiveness. KPIs can be financial, such as profitability and revenue growth, or non-financial, such as customer satisfaction and employee retention rates.

A key performance indicator (KPI) is a measurable value that demonstrates how effectively a company achieves key business objectives. Organizations use KPIs at multiple levels to evaluate their success in reaching targets. In social media, some common KPIs include engagement rate, reach, impressions, and web traffic. These metrics help businesses gauge whether their social media efforts result in meaningful customer interactions and drive website traffic. KPIs can help assess the effectiveness of a company’s social media strategy and campaigns. By tracking KPIs, businesses can identify areas where they need to improve their social media efforts.

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