BASIC GUIDE

What is a KPI?

A KPI (key performance indicator) measures whether your team is moving toward a specific goal. It summarizes how an area or the business is performing against a defined target.

It must be measurable, actionable, and reviewed regularly. Dashboards visualize it in context so the team can align decisions.

KPI and business metrics panel in RapidBoard

Traits of a good KPI

  • Aligned with a clear business objective
  • Measurable with data you already have or can obtain
  • Triggers a concrete action if it worsens
  • Reviewed frequently (weekly or monthly, depending on the area)
  • Understandable to whoever decides — not just analysts

KPI examples by area

A quick reference of common indicators by department.

Sales

Conversion rate, average deal size, active pipeline, quota attainment.

Operations

Delivery time, error rate, capacity utilization, cost per unit.

Finance

Gross margin, cash flow, days sales outstanding, EBITDA.

Marketing

Cost per lead, ROAS, open rate, landing page conversion.

Important sales KPIs

If you lead sales or commercial, these indicators are usually the first ones to monitor on a dashboard.

Total pipeline

Value of open opportunities. Anticipates future revenue and flags weak prospecting.

Conversion rate

Percentage of leads or opportunities that close. Measures sales team efficiency.

Average deal size

Average amount per sale. Useful to see if you're growing value per customer or relying on volume.

Quota attainment

Progress vs. period goal. The KPI every sales manager checks first.

Sales cycle

Days from first contact to close. Surfaces friction in the sales process.

Churn / cancellation rate

Customers who leave. Complements new sales with real retention.

Sales per rep

Individual productivity and workload distribution across the team.

Win rate

Percentage of proposals won. Signals opportunity quality and value proposition.

How to choose your KPIs

  1. Start with 3–5 KPIs tied to the quarter's goal — not an endless list.
  2. Ask: if this number worsens, do I know what to do? If not, it's not a KPI yet.
  3. Avoid vanity metrics (likes, visits without conversion) if they don't impact revenue or operations.
  4. Review with the team each month whether they're still the right indicators.

Keep reading

What is a dashboard?

Learn where and how to visualize your KPIs in one panel.

Discover RapidBoard

Automated reports

Automate KPI delivery to your team without consolidating Excel.

FREQUENTLY ASKED QUESTIONS

We answer your questions

Every KPI is a metric, but not every metric is a KPI. A KPI is tied to a strategic objective and guides decisions; a metric can be informational without a clear action.
It depends on the area, but between 5 and 10 per team is usually manageable. Too many indicators dilute focus and nobody reviews them.
Some are shared (revenue, margin), but each area has its own. Operations prioritizes time and quality; marketing, acquisition and conversion.

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