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Key performance indicators (KPIs)

Key Performance Indicators (KPIs) are metrics used to evaluate an organization’s performance in achieving its objectives. KPIs provide a clear picture of how well a company is performing in various areas of its operations. They help to identify areas that need improvement and guide decision-making processes.

History of KPIs

The use of KPIs dates back to the 19th century when companies started using financial ratios to measure their performance. Over time, KPIs have evolved to cover other areas such as customer service, employee productivity, and environmental sustainability.

Market Volume

The use of KPIs has become increasingly popular in recent years. According to a report by the Aberdeen Group, companies that use KPIs have a 10% higher profitability rate than those that do not. The global market for KPI software is projected to reach $4.6 billion by 2025.


There are various types of KPIs, including financial, customer, employee, and operational KPIs. The most commonly used KPIs are revenue growth, net profit margin, customer satisfaction, employee turnover rate, and inventory turnover.

In conclusion, KPIs are essential for measuring a company’s success and identifying areas that need improvement. By tracking KPIs, businesses can make informed decisions and adjust their strategies to achieve their goals. As the market for KPI software continues to grow, it is clear that more companies are recognizing the importance of using data-driven metrics to drive success.

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