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Read More →Download the data analytics KPI guide PDF from Uncodemy: what KPIs are, how to choose them, definition cards, examples by function and mistakes.
This page offers Uncodemy's data analytics KPI guide as a PDF download. A KPI, or key performance indicator, is a measurable value that shows how well a team is progressing toward an objective. Good KPIs are few, clearly defined, tied to a goal and owned by someone. The guide explains how to select them and gives examples by function.
Download the complete KPI guide as a PDF. Fill in the short form and the file will download automatically.
What KPIs are, how they differ from metrics, the five-step selection process, example KPIs by function, definition cards, a SQL example, and the common mistakes to avoid.
A key performance indicator is a number that tells you whether you are moving toward an important objective. The word key matters: a KPI is not any metric you can calculate, it is one of the few measures that genuinely reflect success for a team or business.
A company can track hundreds of metrics, such as page views, calls handled or invoices raised, but only a handful of them deserve the title KPI because they connect directly to a goal like revenue growth, customer retention or delivery on time.
| Term | Meaning | Example |
|---|---|---|
| Measure | A raw number from the data | Total orders: 12,400 |
| Metric | A calculated value that describes something | Average order value = revenue / orders |
| KPI | A metric tied to a goal, with a target | Repeat purchase rate of at least a target set by the business |
| OKR | An objective with measurable key results | Improve retention: raise the 90-day repeat rate |
A useful KPI is specific, so that two people calculate it the same way. It is measurable from data you can actually obtain regularly. It is relevant, meaning it connects to an objective someone cares about. It has a target or benchmark, because a number without a comparison cannot say good or bad.
It is time-bound, with a clear period such as weekly or monthly. Finally it is owned: one person or team is responsible for moving it. The popular SMART idea captures most of this, and it is a handy checklist to apply to every KPI you propose.
| Function | KPI | Formula or idea |
|---|---|---|
| Sales | Conversion rate | Deals won / qualified opportunities |
| Sales | Average deal size | Total won value / number of deals won |
| Marketing | Cost per lead | Marketing spend / leads generated |
| Marketing | Return on ad spend | Revenue attributed to ads / ad spend |
| Customer success | Churn rate | Customers lost in period / customers at start of period |
| Finance | Gross margin | (Revenue - cost of goods sold) / revenue |
| Operations | On-time delivery rate | Orders delivered on time / total orders delivered |
| HR | Attrition rate | Employees who left / average headcount |
| Support | First response time | Average time to first reply on a ticket |
Lagging indicators report results after they happen, such as monthly revenue or yearly churn. They are important but arrive too late to change the outcome. Leading indicators measure activities that tend to precede the result, such as the number of demos booked this week or the share of users who complete onboarding.
A balanced KPI set mixes both: the lagging KPI shows whether the goal was met and the leading KPIs give the team something they can influence today. Be careful to validate that a leading indicator really predicts the outcome, otherwise teams optimise a number that does not matter.
Most disagreements about numbers come from unclear definitions. A definition card removes the doubt. It states the KPI name, the business question it answers, the exact formula, the data source and tables, what is included and excluded, the time period, the target, the owner and the refresh schedule.
For churn, for instance, the card should say whether a customer who pauses counts as lost and over which window churn is measured. Store these cards where everyone can see them and link them from the dashboard so users can check the definition in one click.
Monthly average order value from an orders table, excluding cancelled orders. The definition is explicit in the code, so anyone can audit it.
SELECT strftime('%Y-%m', order_date) AS month,
ROUND(AVG(order_total), 2) AS avg_order_value
FROM orders
WHERE status <> 'cancelled'
GROUP BY strftime('%Y-%m', order_date)
ORDER BY month;KPIs are not permanent. As strategy changes, a KPI that once mattered can become irrelevant. Review the set every quarter, retire numbers that no longer drive action and add new ones when objectives change. When you change a definition, record the date and, if possible, recalculate history so trends stay comparable.
Ready to build KPI sets that drive decisions? Explore Uncodemy's Data Analytics course and learn from industry trainers.