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KPIs and Metrics: What’s the Difference & How Do You Measure Both?

KPIs and Metrics: What’s the Difference & How Do You Measure Both?

With regards to following and estimating business execution, it might appear simple to overcomplicate things. Furthermore, it may be one of those regions where it seems insignificant when it comes to explaining. KPIs and Metrics play a significant role.

Be that as it may, there are some differences between KPIs and Metrics, by definition and role. Yet, both KPIs and metrics measure and eventually improve a company’s performance in the job. What is the critical difference between KPI and Metrics and how to measure them?

What is the difference between KPIs and Metrics?

A KPI or a key performance indicator is a quantifiable value used to follow progress against (individual, group, organization) set objectives. KPIs give guidance towards accomplishing desired outcomes like bringing in customers (Marketing KPI) and can help your business settle on better choices. 

A KPI should be: 

1- It should be measurable and explainable.

2- Applicable to your business 

3- Able to give information of recorded performance towards accomplishing set targets and business goals.

All you track in your business is a metric, yet a couple of metrics are straightforwardly appropriate to your primary business object, making them key performance indicators.


A metric is a quantifiable measure used to follow the advance and mainly to measure achievements. Specifically, business metrics are to follow the progress in specific regions that are basic to a business’s strength, for example, income, customers, representatives, etc. 

It’s essential not to mistake a metric with a  measure as well. The measure is a primary or unit-explicit term, whereas a metric is obtained from more measures.

Few Examples of KPIs vs. Metrics?

The number of articles that got published this month? How many clients retained and compare Marketing KPI with it? Keywords used in the search engine? How effective have you been in achieving Sales KPI? Are your employees satisfied with the job? Compare how many people clicked the link and the number of emails you sent? The number of people visiting your site?

Metrics are Datapoints while KPIs are goals.

Any departments set up a few goals in its Business plan. Either the goals are related to Marketing KPI for Sales KPI and tries to achieve them. Metrics are something that is on the Analytical Dashboard when piled up together, makes up KPIs.

KPIs vs. Metrics Breakdown.

Suppose an organization wants to measure the number of signups for any seminar. Here KPI of sign-ups is a KPI, while the number of people clicking on the email and conversation rate is two different metrics. Hence this is how multiple metrics make up a single KPI. KPIs and Metrics work together and form a goal.

KPI specifies timeframe – KPI is set for a specific period like one month, two months, and so on, while metric has no such rule. KPI for the company’s Financial Metrics means how a company is doing with its Sales, income, and what ratios combine them all. A simple breakdown of KPI vs. Metrics is for every KPI, there are metrics involved, but not for each metric, there is a KPI.

Separating KPIs and Metrics

That is the thing that recognizes KPIs from metrics. In a real sense, anything, as long as you can check it, can be a measurement. The issue is that a metric doesn’t do much for you. It doesn’t give you a marker of how your business performs, helps you distribute assets, or recognizes vital objectives. It’s merely a number. What’s more, the issue with numbers – and this is especially obvious today, when we can estimate almost everything.

Why look at both KPIs and Metrics?

Because your KPIs are your most important measurements doesn’t mean metrics are pointless. When one of your KPI crucial signs goes wrong, you should have the option to look at different metrics to analyze the issue appropriately. 

Suppose inbound leads are one of your KPIs, and that number unexpectedly experiences a plunge. While the KPI advises you there’s an issue, your different metrics will help you understand what occurred. Possibly this is because there are broken connections on your site, or a mistake impeded leads from pushing to your CRM, or Facebook changed their calculation and slaughtered your most exceptionally changing over promotions. To recognize the main driver, you’ll need to take a look at metrics, such as site transformations, CRM information ( you can also take the information from CRM Financial Model), advertisement impressions and snaps, and so forth.

For every KPI, there are metrics involved, but not for each metric; there is a KPI.

Metrics act as characters in any story. Each one in the story is essential for that story and is there on purpose. Yet, a portion of those characters show up on a page, others appear in each section, and afterward, there are those characters in the story – the main characters, without which a story can not take place. 

Those fundamental, main characters are the KPIs of your business story. Those individuals are the metrics, which are there to help the narrating and help your main characters.

Consider metrics like a hockey group. Everyone in the group is a player. Be that as it may, few are halting the puck inside the team, known as goalies. There are likewise different players in the group – defencemen, focuses, wingers. None of them, nonetheless, are goalies.

In conclusion, there is a massive load of various metrics to browse; however, some are a higher priority than others regarding your business objectives. Those are your KPIs.

How many KPIs and Metrics should a business follow?

As mentioned earlier, there are tons of different metrics forming KPIs, but how many KPIs should a business keep and follow. Most experts say they keep less than ten KPIs and Metrics associated with it, but few comments to keep 5-7 key performance indicators.

Few techniques/tips on measuring KPIs and Metrics

There are many techniques and tips which can help you measure KPIs and Metrics, but experts recommend these few points which an organization can follow.

Changing KPIs with each channel

Each channel has its own KPI. At the same time, metrics are what impact the KPIs. Organizations take a glance at metrics and any plan such as a financial plan accordingly to improve these metrics and meet the KPIs. An example is that there are Return on investment (ROI) KPIs for the specific channel. Be that as it may, take a look at engagement measurements and income metrics to change techniques to hit key measures and hit the general KPIs.

Calculate the KPIs and Metrics used?

You can not make KPIs if you don’t know what you want to achieve in business. We can say increase CTA by 20% this year. We estimate metrics by having an insight on what we want to do and what tools will be useful. Now while making a plan, we check other metrics that can be part of our KPI.

While calculating KPI, every company uses a different frequency. It all depends on the company’s level. Some organizations measure it daily, while others reckon it weekly. Some organizations measure monthly on the executive level.

 Metrics – measured using Dashboard

Some other party measures metrics. They say that they do have a few mistakes now and then. To drive metrics, organizations give different data points and measure the average of those points that something goes wrong on the off chance that one programming/software varies from the other one.

We measure KPI’s by setting goals and comparing them with it consistently. Measurements permit us to see how the company has performed in different areas and why they didn’t arrive at targetted objectives.

Then again, business knowledge dashboards rejuvenate metrics with delightful perception. They likewise permit you to make explicit KPI-just dashboards to remain centered. A dashboard isn’t simply simpler to utilize, yet it’s an incredibly viable approach to following key goals, driving your business choices, setting marketing KPI or Sales KPI, and quickening development. 

Context helps to evaluate KPIs and Metrics.

Organizations do data analysis to drive KPIs; however, individuals should use a simple, streamlined context to understand what is data and what each point says.

At times, organizations may not achieve the desired KPI; however, seeing real-world circumstances, Covid shouldn’t be able to crash a salesman’s salary since they missed the desired goal. This is the human component of considering KPIs in contrast to different measurements followed through computerization.

Use Ratios to measure KPIs and Metrics.

A ratio or proportion divides one sum by a total. It differs from what average is. It’s typically another proportion of a similar population and not the total population. 

1-All deals received needs to be divided by all-out sales, which were invoiced. 

2-Total sales divided by the entire time it has taken on all the sales calls. 

When you measure metrics, you need to take all the critical data to measure and work around that data. For instance, looking at Sales KPI and associates metrics to measure the team’s performances related to sales or Marketing KPI to measure how effective your campaign for a particular product was. To check a company’s productivity, which shows the general abilities and how well it utilizes its assets. Productivity has a connection between inputs and yields. 

Now to conclude KPIs and Metrics.

Metrics help you track a single business measure while KPIs disclose how viably you’re accomplishing your business objectives and targets. You straightforwardly measure metrics like taking snaps, however for KPIs, you contrast that number and a mark or goal and perceive the amount of it you’ve accomplished. 

For making it clear to everybody in the organization to perform, by defining clear business objectives, you would then be able to recognize which information is likely to look n as a metric and which should be viewed as a KPI.


Oak Business Consultant has helped many Start-up and SME’s for the preparation of Business Plan, Financial Modelling, and Financial Consultancy.

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