What is a KPI: Understanding Key Performance Indicators and How to Implement Them to Support Your Business Processes

In business, what’s measured improves

Mark Cuban

This quote from the successful American entrepreneur perfectly captures the core purpose of KPIs: the inseparable link between measurement and business growth. KPI stands for Key Performance Indicators.

Using KPIs is particularly important in today’s data-driven business environment, where informed decisions are essential for strategic growth. By tracking process efficiency, customer satisfaction, or team performance, a company can adapt faster, identify weak spots, and build on its strengths. Without measurement, it’s impossible to accurately assess the current state of things or know what needs improvement.

So, What Exactly Is a KPI (Key Performance Indicator)?

A KPI is a key performance indicator that helps businesses measure and evaluate their progress toward strategic and operational goals. With precise metrics, companies gain a clear understanding of how well they are performing, allowing them to adjust strategies and optimize operations to reach their desired outcomes.

What Is a KPI system?

A KPI system is a performance assessment methodology that evaluates how effectively a company, team, or individual employee is performing, based on measurable indicators. As a comprehensive framework, a KPI system helps determine the level of achievement of an organization’s strategic and tactical goals. It enables managers to objectively analyze performance results and make informed decisions.

Which Business Areas Are Affected by Key Performance Indicators?

Key performance indicators help not only monitor goal achievement, but also maintain strong employee engagement, serve as a powerful motivational tool, support quick adaptation to change, and promote greater transparency in business processes.

KPIs perform a number of important functions for businesses and help ensure:

• Monitoring and measuring performance – These are the primary roles of KPIs. They allow companies to determine whether strategic goals are being achieved. Key performance indicators translate abstract business objectives into specific numerical values that can be analyzed.
• Identifying strengths and weaknesses – KPIs make it possible to assess which company processes are working effectively and which need improvement. For example, if the sales conversion rate is lower than expected, this signals the need to adjust the customer engagement strategy or provide employee training.
• Informed decision-making – The objective data provided by KPIs serves as a solid foundation for making sound management decisions. KPIs allow leaders to respond quickly to changes, reallocate resources, and adjust development strategies based on real numbers rather than assumptions.
• Motivation and focus for the team – Employee KPIs are a powerful motivational tool because they clearly show what results are expected from team members. Setting specific and measurable goals keeps the team focused on the most important tasks and supports high levels of engagement and understanding of both strategic or project goals and personal objectives.
• Process transparency and accountability – KPIs bring transparency to processes by making it easy to see which actions lead to goal achievement and which do not. Setting clear indicators not only defines goals but also identifies who is responsible for meeting them. This means each employee or department becomes accountable for their part of the work, ensuring clarity about who is responsible for what results.
• Forecasting and strategic planning – KPIs reflect not only the current state of operations but also help predict future outcomes. Analyzing trends in key indicators allows businesses to anticipate potential risks and opportunities, enabling more effective long-term planning.

Types of KPIs and How They’re Classified

Business analysts classify KPIs based on the type of information they represent and the areas of company operations they help monitor. This parameter-based classification allows companies to structure their KPI system and use it as effectively as possible. Let’s explore the main types of key performance indicators and their key characteristics.

By scope of coverage

• Strategic – Reflect the overall state of the company and its progress in achieving long-term goals. These KPIs help evaluate profitability, market share, and customer satisfaction. Examples include EBITDA (earnings before interest, taxes, depreciation, and amortization) or NPS (Net Promoter Score).
• Operational – Focus on the efficiency of day-to-day business processes. They help measure order processing speed, resource utilization, or team productivity. For example, AHT (Average Handling Time) or CRR (Customer Retention Rate).

By evaluation object

• Financial – Reflect the financial health of the business, profitability, and efficiency in resource management. Examples include ROI (Return on Investment), ROE (Return on Equity), profit margin, and net profit.
• Marketing – Measure the effectiveness of marketing campaigns and brand strategy. These KPI metrics include CAC (Customer Acquisition Cost), LTV (Customer Lifetime Value), CTR (Click-Through Rate), and others.
• HR – HR KPIs evaluate employee performance, engagement levels, and recruitment effectiveness. Examples include TTH (Time to Hire), ETR (Employee Turnover Rate), or Employee Productivity.

By measurement method

• Absolute KPIs – Represent specific numerical values such as number of products sold, number of new customers, or average purchase size. These are simple and reliable metrics. For example, the number of products sold, or new clients acquired are straightforward indicators that don’t require extra interpretation.
• Relative KPIs – Expressed as percentages or ratios, such as conversion rate, annual revenue growth, or sales profitability. These KPIs provide a more flexible view of performance, enabling comparisons under different conditions or time periods. For instance, the conversion rate helps assess the effectiveness of marketing campaigns by comparing visitors to actual buyers.

By evaluation period

• Short-term KPIs – Used to monitor operational tasks. Examples include SR (Service Response Time), AHT (Average Handling Time), or FCR (First Contact Resolution).
• Long-term KPIs – Help evaluate business development over months or years. These include CRR (Customer Retention Rate) and market growth metrics such as CAGR (Compound Annual Growth Rate).

By impact direction

• Lagging KPIs – Indicators that reflect the results of past actions. These may include quarterly profits or market share following a marketing campaign.
• Leading KPIs – Point to future trends. For example, the number of new leads can predict future sales growth.

Understanding these KPI categories helps companies decide which specific KPI metrics to implement to achieve desired results. It’s important to evaluate them dynamically, adapt to changes, and use them as a basis for strategic management. Only then will the KPI system truly serve the business.

How to Choose the Right KPIs for Your Business and Specific Areas of Operation

There is no one-size-fits-all approach to selecting key performance indicators – KPI selection depends on many factors, such as the nature of your business, type of operations, strategic goals, and more. Here are several key aspects to analyze and consider while choosing the most relevant KPIs.

1. Type of business – First and foremost, determine whether your business is consumer-facing (B2C – Business to Consumer) or operates with other businesses (B2B – Business to Business). This distinction helps you understand which indicators are most relevant for your business model:

• B2C – If your business serves consumers, your KPIs should include metrics that track customer interaction: buyer satisfaction, conversion rates, and sales revenue. Examples include average order value, customer retention rate, lead-to-sale conversion, and more.
• B2B – In a B2B model, KPIs will be more focused on long-term partner relationships, negotiation effectiveness, and business scaling. Relevant metrics include number of deals closed, partner satisfaction, number of new contracts, time to close a deal, and others.

2. Industry – It’s clear that different industries have unique challenges and requirements, so KPIs should be tailored to match your company’s specific operations. For example:

• E-commerce – Important KPIs in this sector include average order value, website traffic, conversion rate, customer acquisition cost (CAC), and other digital marketing performance indicators.
• Services – For service-based companies, key metrics include customer satisfaction, order fulfillment speed, repeat purchases, or subscription rates.
• Manufacturing – Core metrics include productivity level, output volume, production costs, product quality (defect rate), and resource efficiency.

3. Business strategic goals – This is one of the most important factors in KPI If your company is focused on rapid growth, your KPIs might relate to revenue increase, market expansion, or customer base growth. If your strategy prioritizes stability, the focus will shift to cost optimization, defect reduction in production, or boosting customer retention.
4. Company culture and internal specifics – Internal business processes and organizational culture also influence KPI For example:

• Innovation-driven companies – If your company focuses on innovation and new product development, relevant KPIs could include number of new product launches or time to market. These may also include the rate of idea development or the percentage of new products in the overall portfolio.
• Quality-focused companies – For these businesses, KPIs related to product or service quality will take priority. This may include the percentage of positive customer reviews, number of complaints, or warranty claims.
• Employee-oriented companies – If the goal is to improve employee satisfaction and retention, valuable KPIs will include employee satisfaction scores, training and development effectiveness, and retention rate.

At the same time, selecting the right KPIs also depends on the specialization and functionality of the specific department that will be using these metrics. Let’s look at how to choose effective KPIs for various roles and departments.

Examples of KPIs for Different Roles

KPIs for Sales Managers

KPIs for sales team members are typically tied to financial and quantitative metrics, including:

• Sales volume – total sales amount over a specific period.
• Number of new customers – measures how effectively new clients or partners are attracted.
• Lead-to-customer conversion rate – percentage of leads converted into actual customers.
• Average order value – average revenue generated per customer.

KPIs for Marketers

Marketing KPIs can include both quantitative and qualitative performance indicators:

• CTR (Click-Through Rate) – measures how often users click on ads.
• LTV (Lifetime Value) – the total revenue a customer is expected to generate over their lifetime.
• ROI (Return on Investment) – profitability of marketing campaigns.
• Number of leads generated – indicates the effectiveness of marketing campaigns and product/service awareness strategies.

KPIs for Designers

Designer KPIs can reflect both the quantity and quality of work delivered:

• Number of completed projects – tracks output within a specific period.
• Task completion time – example of a KPI that measures how long it takes to complete a project or design element. For example, if a design team is working on an ad banner, this KPI could measure the average time from concept to final approval.

• Quality of work – may include the percentage of projects approved on the first submission determining how many projects were approved by clients or management without revision upon the first submission, or the number of revisions required after initial delivery.

KPIs for Recruiters

• Time to fill – average time from opening a vacancy to hiring a candidate.
• Number of candidates per vacancy – how many applicants were sourced for a given role.
• Quality of hire – another KPI example that determines the percentage of new hires who remain with the company after the probation period.

KPIs for Accountants

Key performance indicators for accounting staff may include:

• Accuracy of financial reporting – error rate in financial reports.
• Financial close cycle time – speed of completing accounting operations.
• Timeliness of tax reporting – how promptly reports are submitted to government agencies.

KPIs for Targeting Specialists

• Ad campaign ROI – return on investment from advertising.
• Ad click-through rate (CTR) – effectiveness of ad creatives.
• Customer acquisition cost (CAC) – how much it costs to attract a new customer via ads.

KPIs for CFOs

CFOs focus on metrics that reflect financial stability and profitability:

• Return on investment (ROI) – how effectively company funds are used.
• Debt ratio – how much debt the company holds and how efficiently it is repaid.
• Cash Flow – balance between incoming and outgoing funds.

Example KPIs for HRs

A wide range of HR metrics exists, but key ones focus on talent management and employee performance:

• Employee turnover rate – how many employees leave the company.
• Average time to fill a vacancy – how long it takes to hire new employees.
• Employee satisfaction level – how employees rate their work experience and environment.

Example KPIs for SMM Specialists

• Number of followers/subscribers – tracks brand audience size on social media.
• Engagement rate – measures likes, comments, shares, and other interactions.
• CTR for promoted posts – click-through rate of posts containing ads or promotional content.

How to Calculate Employee KPIs and the Steps for Analyzing and Interpreting Indicators to Achieve Maximum Results

KPI Calculation

The general calculation algorithm includes several key stages:

Stage 1 – Defining the Objective

Before calculating a KPI, you need to clearly define what exactly you want to measure. For example, if the goal is to increase the efficiency of the sales department, you can use indicators such as lead-to-customer conversion rate.

Stage 2 – Defining the KPI Formula

Each indicator has its own formula that helps derive an accurate value. The KPI formula should reflect the actual processes in the company. For instance, in sales, the KPI might be calculated based on the number of closed deals, while in HR – based on the time it takes to fill a vacancy. At the same time, the formula should not be overly complex. The simpler the calculation approach, the easier it is to analyze the results and make decisions. It is important that the method is based on indicators that can be monitored regularly.

Stage 3 – Choosing the Measurement Period

To obtain accurate data, it is necessary to define a time frame. For example, monthly KPI analysis allows you to track trends and respond to changes more quickly.

Stage 4 – Interpreting the Results

After calculating a KPI, it is important to compare it with planned values or industry standards to determine whether the process is performing effectively.

Analyzing and Interpreting Indicators

For indicators to benefit the business, it is also important to analyze and interpret them correctly. An effective process should include the following points:

Defining a Benchmark for Comparison

Before evaluating a specific KPI, you need to establish a benchmark for comparison. This could be a previous period or a planned value. For example, if you are analyzing time to fill a vacancy, compare the current results with the previous year or with internal company standards. It’s important to understand that indicators can vary depending on the business, industry, or even seasonality.

Interpreting Trends

When analyzing key performance indicators, it is important to pay attention not only to their values at a specific point in time but also to their dynamics. Trends reflect long-term changes and help you understand the overall direction of company or process development. Looking at a single KPI value may give a distorted picture. For example, if sales drop in one month, it may be a random fluctuation rather than a serious issue. However, if the indicator declines over several consecutive months, it becomes a trend that requires attention and analysis. Additionally, some indicators are subject to natural fluctuations. In retail, for example, sales volumes typically rise before holidays and fall during the summer. That’s why it’s important to evaluate KPI changes in the context of the market and business environment.

Correlation with Other Indicators

When interpreting KPIs, it is crucial to understand how one indicator may affect others. For example, if you observe an increase in the number of new customers, you should also check the average order value or customer satisfaction level. If the number of customers increases but the average order value decreases, this may indicate that new customers are not receiving sufficient value from the product or service.

Root Cause Analysis

Interpreting KPIs is not limited to numbers alone. You need to understand the reasons behind changes in the indicators. For instance, if the financial close cycle time has increased, it could be due to poor communication between departments or issues with automation systems. Identifying the root cause allows you to take appropriate measures to improve the situation.

Forecasting and Strategy Adjustment

Through detailed KPI analysis, you can make forecasts and adjust strategies. If the indicators do not meet expectations, it is necessary to find ways to adjust the strategy or processes. At the same time, it is important to consider external factors such as economic conditions or changes in the competitive landscape, which may influence the results.

Thus, calculating and interpreting KPIs is a complex analysis that helps make informed decisions and improve business efficiency. Well-chosen indicators and in-depth analysis will help your company optimize processes, improve strategies, and achieve desired results.

How to Implement a KPI System: A Simple Step-by-Step Guide

Implementing a KPI system is a strategic process based on real business goals, the company’s structure, and employee expectations. Let’s explore how to implement key performance indicators so they become an effective development tool rather than a mere formality:

Step 1: Define Company Goals

Without clearly defined goals, KPIs lose their meaning. Ask yourself:

• What is the priority for your business?
• What results do you want to achieve in one, three, or five years?
• How can you measure progress toward these goals?

Goals can be strategic (e.g., increasing market share) or operational (such as reducing production costs). These goals form the foundation for developing a KPI system.

Step 2: Identify Key Business Processes

Every business consists of a series of processes – from marketing and sales to production and customer service. For KPIs to be effective, it’s essential to understand which of these processes have a critical impact on achieving your goals. For example, if a company aims to increase profitability, it’s important to track product margin levels, average customer spend, customer retention rate, and so on.

Step 3: Select Relevant Key Indicators

Now that you know your goals and processes, you need to choose the indicators. KPIs should follow the SMART principle:

• Specific – clearly define what is being measured.
• Measurable – be numerically expressed.
• Achievable – be realistic and attainable.
• Relevant – align with business goals.
• Time-bound – have defined deadlines for achievement.

Example: increase repeat purchase volume by 15% within six months.

Step 4: Implement a Data Collection and Analysis System

For KPIs to function, they need to be monitored. This means the company should define:

• What data sources will be used? (CRM, ERP, financial reports, etc.)
• Who is responsible for collecting and analyzing the indicators?
• How often should KPIs be evaluated?

It is recommended to use automated data collection systems to eliminate human error and subjective assessments.

Step 5: Communicate the Employee’s KPIs to the Team

Employees must understand what is expected of them and why it matters. Hold meetings, explain how each indicator impacts the overall outcome. It’s important that specialists don’t perceive KPIs as pressure but see them as a tool for their own development.

Step 6: Regularly Analyze the Results

This part is simple: KPIs are not a one-time action but a continuous process. Evaluate the indicators, review their effectiveness, and adjust goals accordingly.

Step 7: Use KPI Indicators for Decision-Making

The collected data should form the basis for managerial decisions. If the indicators show a decline in performance – look for the reasons, analyze what can be improved. If they show consistent growth – use these results to scale your business.

Key Challenges in Using KPIs and Common Mistakes to Avoid

KPIs are a powerful business management tool, but their effectiveness depends on proper implementation and use. Unfortunately, many companies face challenges that prevent them from gaining real value from the system. Let’s review common mistakes that can be avoided by addressing them in advance.

Key Challenges in Implementing and Using KPIs

• Too many key indicators – The more indicators there are, the harder they are to analyze. Employees may become confused about what is expected of them, while managers may spend too much time processing information. Ideally, each area of activity should have 3–5 key indicators.
• Focusing only on financial metrics – If a company measures only profit and expenses, it may overlook other important factors such as customer service quality, employee satisfaction, or internal process efficiency.
• Lack of accountability for results – If there is no specific person or team responsible for analyzing the data and implementing KPI improvements, the data will remain just numbers in a spreadsheet.
• Perceiving KPIs as the goal rather than a tool – The main objective is to help the business grow, not just to collect statistics. If a company focuses on hitting the numbers instead of genuinely improving processes, this may lead to data manipulation or a distorted picture of reality.

Common Mistakes When Implementing KPIs

• Choosing the wrong metrics – One of the biggest mistakes is using performance indicators that have no direct impact on business success. Don’t choose KPIs just because other companies use them – they must align with your specific strategy.
• Misinterpreting data – A drop in metrics doesn’t always indicate a crisis. It’s important to analyze the context. For example, a decrease in the average check size may be the result of a changed business model or a deliberate expansion of the target audience.
• Ignoring qualitative indicators – Not all of the important indicators can be expressed in numbers. For instance, customer satisfaction or employee loyalty also matter, and they can be measured through surveys like NPS (Net Promoter Score) or feedback.
• Keeping KPIs unchanged for too long – Markets and companies are constantly evolving, and key performance indicators should evolve with them to reflect current business challenges.

What Tools Exist for Automating Work with KPIs and What Are the Benefits of Using Modern Solutions

In today’s business environment, the speed of decision-making determines a company’s success, and automating KPI-related work can significantly accelerate this process. Traditional performance evaluation approaches often suffer from inaccuracies, subjectivity, and delays in data collection. That’s why companies are turning to specialized systems – KPI trackers – that allow real-time monitoring of key performance indicators, quick response to changes, the creation of various KPI dashboards for visualizing results, and improved team productivity. These systems include:

1. Comprehensive HRM systems with built-in modules for KPI management, employee evaluation, and analytics (such as SMART HCM & LMS).
2. BI and analytics platforms (e.g., Microsoft Power BI), which visualize performance data and enable in-depth analysis.
3. OKR and goal management systems, which focus on setting and tracking company and employee goals.
4. Task and performance management systems, which help monitor KPI performance through task setting and automated time management.

The choice of system depends on business specifics, company size, and the level of process automation. One modern solution for personnel management that includes tools for working with KPIs is SMART HCM & LMS – comprehensive HR system that allows you to monitor employee KPIs, develop their competencies, and align personal goals with the company’s business strategy. This is made possible thanks to the system’s numerous modules.

Employee Evaluation: Monitoring KPIs, Competencies, and Skills

As mentioned earlier, monitoring key indicators must be systematic and accurate. The Employee Assessment module enables real-time tracking of team performance, assessing competencies, and identifying development areas. As a result, companies gain:

• Automated monitoring of key performance indicators
• Convenient tools for assessing specialist skills
• Functionality for building an objective employee development decision-making system

Goal Setting Module: Aligning Personal and Corporate Goals

Proper KPI setting starts with understanding the company’s strategic goals. With the Goal Setting module, each employee can see how their personal goals contribute to the company’s overall success. As a result:

• Employees understand their KPIs and work toward achieving defined objectives
• Managers can quickly adjust priorities and tasks
• The risk of disconnecting between individual and strategic company goals is reduced

E-learning: Training as a Tool to Improve KPIs

Competency levels directly affect job performance. The E-Learning module helps plan training based on business needs, developing both hard and soft skills in the team. This helps bridge knowledge gaps that impact key performance indicators.

Gamification: Engaging Employees in Achieving KPIs

Motivation is key to successful KPI achievement. By using game mechanics and a reward system, the process of achieving goals becomes not just a requirement, but a fun challenge for employees. This approach fosters higher engagement and a healthy competitive spirit within the team.

HR Analytics: A Single Source of Truth

The SMART HCM & LMS solution integrates with Power BI, enabling visualization of important employee and KPI data in a format that is easy to interpret and analyze. The module provides automated analytical data and a deep understanding of team performance to support effective decision-making.

In summary, SMART HCM & LMS is a comprehensive tool that helps companies set goals, monitor KPIs (key performance indicators), develop human capital, and make business processes clear and transparent for all team members.

Frequently Asked Questions

What is a KPI in simple terms without unnecessary complexity?

Simply put, a KPI is a measurable indicator that shows whether a company, team, or employee is achieving their goals. For example, if you’re training for a marathon, your KPIs could be the time it takes you to complete your training runs or the distance you cover each time. If those indicators improve, it means you’re getting closer to your goal – winning the marathon.

How do Key Performance Indicators benefit employees?

1. Clear understanding of goals – KPIs help employees understand the specific outcomes expected from them, bringing clarity to task execution.
2. Improved motivation – When a goal is measurable, employees are more driven to reach it because the outcome is clear and tangible.
3. Constructive feedback – KPIs provide managers with a solid basis for giving structured feedback and maintaining effective communication.
4. Increased efficiency – Well-defined indicators help focus on what matters most and reduce distractions, positively affecting performance.
5. Progress tracking – With KPIs, employees can monitor their achievements and progress more accurately, allowing them to adjust their approach in time to achieve better results.

How are KPIs linked to employee compensation?

KPIs influence employee compensation as they are often used to assess performance and goal achievement. In many companies, meeting or exceeding KPI targets is tied to bonuses, incentives, or salary increases. The better an employee performs against these key indicators, the higher the likelihood of financial rewards. This creates a transparent motivation system where income is based on measurable outcomes rather than subjective assessments.

Is there a standard number of KPIs that should be used?

There is no universal standard, but balance is key: too many indicators can scatter focus, while too few may not give a full picture of performance. The optimal approach is to define 3–7 key metrics per process or role – enough to remain meaningful, measurable, and truly impactful.

What tools can help manage KPIs?

To monitor and automate KPI tracking, companies use analytics platforms, BI systems, and specialized HR tools. For example, SMART HCM & LMS by SMART business helps companies monitor employee performance, analyze goal achievement, and automate HR management processes.

What are the main ways to motivate employees to meet KPI targets?

Motivation typically combines financial and non-financial incentives such as bonuses, promotions, recognition, and professional development. One effective method is gamification, which makes goal achievement engaging. For instance, SMART HCM & LMS includes a module that allows companies to create rankings, competitions, and rewards – turning goal setting into a game and boosting employee engagement and performance.

OKR vs KPI – what’s the difference and their role in business?

OKR (Objectives and Key Results) and KPI (Key Performance Indicators) are two different performance management tools. OKRs focus on setting clear goals and measurable outcomes to be achieved within a specific period, serving strategic alignment and motivation. KPIs, in contrast, are quantitative metrics that monitor progress toward specific goals, helping to track ongoing performance. OKRs steer toward ambitious outcomes, while KPIs measure day-to-day operations – together forming a comprehensive performance management system.

How do you choose the right KPIs for a specific business process?

Start by identifying the key stages of the process that directly impact the outcome and select indicators that accurately reflect the performance of those stages. KPIs should be specific, measurable, and achievable so that employees understand how they can influence the results. Also, ensure your indicators are adaptable to changes in the business environment to stay relevant and actionable.

What are the main KPIs for marketing?

Key marketing KPIs help assess the effectiveness of campaigns and audience engagement. Some of the most important ones include lead-to-customer conversion rate, which reflects the success of advertising efforts; customer acquisition cost (CAC), which helps control the budget; and the ROI of marketing activities, which shows the profitability of investments. Other relevant KPIs include audience reach, engagement rate, and website traffic. The specific KPIs a company uses depend on its marketing goals and business model.

What are the main KPIs in manufacturing?

In manufacturing, KPIs cover productivity, quality, and resource efficiency. Key metrics include OEE (Overall Equipment Effectiveness), which reflects how efficiently equipment is used; defect rate, which indicates product quality; and production cost, which helps control expenses. Other important indicators are production cycle time and on-time order fulfillment rate, both of which affect the speed and reliability of manufacturing.

What are the main KPIs for a call center?

For a call center, key KPIs include Average Handling Time (AHT), which affects service speed; Customer Satisfaction Score (CSAT), reflecting the quality of interactions; and First Call Resolution (FCR), indicating how effectively issues are resolved on the first contact. Other important metrics are Average Speed of Answer (ASA) and call abandonment rate, both of which influence service accessibility. These indicators vary depending on the specifics of each call center, so companies should select the KPIs that best align with their business goals.

What are the main KPIs for a sales department?

In sales, key KPIs focus on deal performance and the efficiency of sales managers. Core metrics include sales volume, which reflects total revenue; lead-to-customer conversion rate, indicating the effectiveness of lead generation; and average deal size, which helps assess sales profitability. Other important indicators are deal closure speed and the number of repeat purchases, both of which signal customer trust. Companies should choose KPIs that best align with their strategy and business objectives.