From the course: Marketing Analytics: Setting and Measuring KPIs
Join today to access over 24,800 courses taught by industry experts.
What's the difference between a KPI and a metric?
From the course: Marketing Analytics: Setting and Measuring KPIs
What's the difference between a KPI and a metric?
- [Narrator] If a metric is defined as a system of measurement, does that mean KPIs or metrics too? Absolutely. KPIs are metrics, but metrics aren't necessarily KPIs. A KPI is a metric that's directly related to an organizational goal or objective. If we think back to Carmen's effective KPI of generating $4,000 a month in a one year period, the KPI Carmen needs to track is revenue generated per month. When tracking this KPI, if Carmen were taking orders from customers, it would be clear when she's hit her $4,000 target. It'll be revealed in the revenue from each order placed by customers. On the other hand, if Carmen had a team making the baked goods, they may not be involved with the bakery revenue on a daily basis. This makes it hard for them to relate to the KPI of $4,000 a month for Carmen. To ensure she'll hit our monthly target, it's important that the baking team has enough baked goods to sell. Carmen might need to give the baking team a different KPI that directly relates to…
Download courses and learn on the go
Watch courses on your mobile device without an internet connection. Download courses using your iOS or Android LinkedIn Learning app.