The difference between a KPI and a Metric

Summary:
How does one decide if a Metric qualifies as a Key Performance Indicator? and if so, what are the characteristics of an excellent online marketing KPI?

I am actually an extraordinarily positive advocate of creating and using KPIs and I truly believe that one has to understand that using KPI and Metric interchangeable is not only wrong, but it can significantly damage your optimization initiatives!

Remember: a KPI is a Metric but a Metric is not necessarily a KPI!

Without real KPIs an organisation will not perform to its maximum and this is in particularly true for businesses where online performance is a vehicle for success. And I think it is noteworthy to remind us all that It is rarely about financial metrics - They represent the results of driving a good KPI.

Essentially concluding that KPIs are a communication and steering vehicle for management.

I will present the following 7 KPI characteristics at the RIMC conference in Reykjavik later this week.


7 KPI characteristics

1.
a KPI echoes organizational goals

2.
a KPI is decided by management

3.
a KPI provides context

4.
a KPI creates meaning on all organizational levels

5.
a KPI is based on legitimate data

6.
a KPI is easy to understand

7.
a KPI leads to action!


You are more than welcome to challenge me on any of the above, add to the list or send me free diet cokes as a praise of their brilliance :-)
Find a presentation on the above KPI characteristics below:

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Other great comments to the KPI debate from my fellow Analytics bloggers:

• Top 10 Web Analytics KPI (Key Performance Indicators) (by: Aurélie)
• Emetrics London Reflections: Triggers, Benchmarking, Identifying Goals & KPI Cards (by: Avinash)
• The big book of KPIs (by: Eric)
• Help Yourself to a KPI! (by: Bryan)
• Measuring Key Performance Indicators (by: Manoj)
  

Cheers.. Off to Iceland! :-)