Anyone working in Digital Marketing deals daily with measurements, monitors their campaigns, and… chases results.
However, quite often, two terms get mixed up in our minds — KPIs and Metrics.
So let’s start with the basics… and see what each one actually is!
KPIs (Key Performance Indicators) are defined as quantifiable and strategic measurements that track the critical success factors of an organization. However, KPIs should not be confused with Metrics.
Metrics are defined as a measurement system that quantifies a trend, a dynamic, or a characteristic.
In essence, they are the units through which we measure data. For example, clicks on a campaign, impressions of an ad, or visits to a website are all considered Metrics. On the other hand, a KPI is a measurement that evaluates how well a company is performing in relation to its goals and strategic vision.
Although both KPIs and Metrics are types of measurements, not all Metrics should be classified as KPIs. Metrics are the data points that help monitor and manage KPIs.
The debate over which Metrics qualify as KPIs and which are simply performance indicators is ongoing among professionals — and sometimes, it can be quite difficult to distinguish between them. A simple way to differentiate is that KPIs are strategic indicators, while Metrics are usually tactical or operational measurements.
And of course, the key question we should always ask is: What criteria should we use to select the right KPIs in each case?