The KPI is a key performance indicator. The acronym corresponds to the English term Key Performance Indicator. Of course, in order to make sense of it, the performance objectives are determined in advance. It is important to observe them well in order to adapt the actions in progress. Thus, thanks to these indicators, a marketing department can measure the effectiveness of an e-mailing campaign, for example, and determine the Return On Investment (ROI).
The interest of KPIs
But be careful, even if they are better known, and seem more obvious for a marketing department, KPIs apply to all departments of a company.
In Customer Service, they allow you to have objectives on the processing time of a customer request, or on customer satisfaction. And for that, a good CRM can help them. For financials, a good KPI allows to observe growth rates. For Human Resources, they help to see more clearly the turnover or the absenteeism rate. Finally, for a logistics department, they allow better management of breakage rates or delivery times.