What is the Difference Between KPI and Metrics?
Marketers are required to deliver brand messages to the entire prospect base. Marketers develop elaborate plans to achieve this. Feedback is provided at regular intervals and is used to update the plan in line with market developments. Data is pulled from diverse sources and is part of the feedback. The corporate strategy team works with these two terms very often, day in and day out. However, do you know what is the difference between KPI and metrics?
Definition of KPI
How can anyone describe a KPI? It is a defined and calculable dimension. In order to identify responsibilities, objectives must be created. The definition of a KPI is that it is a way to quantify the quality of your performance and to assess an ongoing activity. So, you have set up an objective. KPIs allow to know whether the objective has been reached.
KPIs may cover the predefined improvement in the number of clients, or the increase in the bottom line, or the progress of the break-even point.
Definition of Metrics
We have discussed KPIs. So, what is the definition of metrics? They are a calculable quantity that can be used to track the different silos in your business. You can pull data from a source; this can be from Google or any other similar website. Metrics are used by you to track progress against certain pre-defined objectives.
Metrics are able to cover a large amount of information. Metrics can be collateral downloads, email clicks, or the number of new website visitors.
KPI vs Metrics Comparison Table
|Basis of Comparison||KPI||Metrics|
|What it means||An amount that measures if an organisation is achieving its objectives as defined in its business plan||A value to measure the progress of any specific procedures related to the organisation|
|Why is it important||You need to periodically test your company’s performance against some predefined objectives||Metrics can be used to track a large number of variables that need to be monitored|
|How it helps||Helps you to comprehend how close or far away you are from company’s objectives||Helps you to quantify key procedures and processes|
|Frequency of monitoring||Less frequently monitored||More frequently monitored|
Conclusion of the Main Difference Between KPI vs Metrics
As a corporate professional, the sooner you understand the difference, the better it is for you. You use both these terms in your daily work with your sales, strategy, HR teams. For different departments, these terms have different functions to fulfill.
How can you make a connection between these two? It’s very simple. Metrics provide the data needed to sustain KPIs. A KPI will be the driving factor in achieving your company’s goals using the data provided by the metrics. Metrics may require daily tracking, but the frequency of tracking KPIs can be monthly or quarterly. We sincerely hope that this blog on KPI vs metrics has dispelled the misconception that may be in your minds. You need to use the correct measures to grow your business.