freecourses.digital
Lesson progress: 0 of 3 activities done
All lessons in Digital and Web Analytics Lesson 1.3 of 32

Connecting analytics to business objectives and KPIs

Your roadmap for this lesson

  • How executives, managers, and specialists use data
  • The chain from objective to goal to KPI to metric
  • The difference between a metric and a KPI

Short answer

A KPI, or key performance indicator, is a metric chosen because it shows progress toward a business goal. The chain runs from business objective to goal to KPI to supporting metrics. All KPIs are metrics, but not all metrics are KPIs. Before opening any report, write down the decision the data should inform.

Analytics at every level

  • Executives decide where to invest, using revenue, growth, and return on ad spend.
  • Marketing managers decide which channels and campaigns to scale or cut.
  • Specialists decide which page, ad, or email to fix next.

A useful habit: before opening a report, write down the decision the data should inform. Data with no decision attached is just numbers.

From objective to metric

Business objective → Goal → KPI → Metric

  • Objective: grow online sales.
  • Goal: increase online sales by 20% this quarter.
  • KPI: e-commerce conversion rate and revenue.
  • Supporting metrics: sessions, add-to-cart rate, checkout completion.

Try it: your KPI chain

Quick quiz

1. Which statement is true?
2. A store wants more online sales. Which is the best KPI?

Your action

Key terms

Metric
Any number you can measure, like sessions or clicks.
KPI
A metric that tracks progress toward a business goal.
Business objective
What the business wants, in plain words.
Supporting metric
A metric that explains why a KPI moved.

Questions beginners ask

How many KPIs should I track?

Usually 1 to 3 per goal. Too many KPIs means none of them gets attention.

Is website traffic a KPI?

Only if the goal is reach or awareness. For sales goals, it is a supporting metric.

Related lessons

Want someone to set up your analytics and reporting while you learn? The team at Remar Digital can help.