What are the Different Types of KPIs? [2023 Update]

In this article we cover the 12 different types of KPIs along with multiple examples from different industries to clearly illustrate each KPI type.

12 KPI Types

Qualitative KPIs

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Qualitative KPIs are KPIs that measure non-numeric values or attributes. They are used to measure subjective aspects of a business such as customer satisfaction, employee morale, brand image, or market share.

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Example:

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Customer Satisfaction Score: Measured through surveys or customer feedback.

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Employee Morale Index: Measured through employee engagement surveys.

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Brand Awareness: Measured through brand recognition surveys.

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Quantitative KPIs

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Quantitative KPIs are KPIs that measure numeric values or data. They are used to measure specific, objective aspects of a business such as sales, revenue, profit, or growth.

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Example:

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Sales Volume: Measured in units or monetary value.

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Gross Margin: Measured as a percentage of revenue.

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Net Profit: Measured as the difference between revenue and expenses.

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Leading KPIs

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Leading KPIs are KPIs that measure early indicators of future performance. They are used to predict future trends and help organizations make informed decisions.

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Example:

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Sales Lead Conversion Rate: Measured as the percentage of sales leads that are converted into paying customers.

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Market Share: Measured as the percentage of a specific market that a company serves.

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Website Traffic: Measured as the number of visitors to a company's website.

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Lagging KPIs

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Lagging KPIs are KPIs that measure historical performance. They are used to assess past performance and identify areas for improvement.

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Example:

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Return on Investment (ROI): Measured as the ratio of profit to investment.

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Sales Growth: Measured as the percentage increase in sales from one period to another.

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Market Penetration: Measured as the percentage of a target market that a company has reached.

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Input KPIs

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Input KPIs are KPIs that measure inputs or resources used in a process. They are used to monitor and control the use of resources to improve efficiency and productivity.

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Example:

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Employee Hours Worked: Measured in hours worked.

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Raw Material Usage: Measured in units or monetary value.

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Machine Utilization: Measured as a percentage of machine time used.

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Output KPIs

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Output KPIs are KPIs that measure the results or outputs of a process. They are used to measure the effectiveness of a process and identify areas for improvement.

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Example:

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Production Output: Measured in units produced.

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Delivery Accuracy: Measured as the percentage of deliveries that are on time and correct.

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Quality Control: Measured as the percentage of products that meet quality standards.

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Process KPIs

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Process KPIs are KPIs that measure the performance of a specific process. They are used to monitor and control the performance of a specific process to improve efficiency and productivity.

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Example:

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Order Processing Time: Measured in the time it takes to process an order.

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Inventory Turnover: Measured as the number of times inventory is sold and replaced in a given period.

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Equipment Downtime: Measured as the time equipment is not operational.

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Practical KPIs

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Practical KPIs are KPIs that measure the practical application or use of a product or service. They are used to assess the effectiveness of a product or service in meeting the needs of customers.

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Example:

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User Adoption Rate: Measured as the percentage of users who adopt a product or service.

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Customer Retention: Measured as the percentage of customers who continue to use a product or service over time.

Product Utilization: Measured as the percentage of a product's potential usage that is actually being used.

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Directional KPIs

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Directional KPIs are KPIs that measure the direction of change in a specific aspect of a business. They are used to determine the trend of a specific metric and identify areas for improvement.

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Example:

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Sales Trend: Measured as the direction of change in sales over time.

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Market Trend: Measured as the direction of change in a specific market over time.

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Customer Feedback Trend: Measured as the direction of change in customer feedback over time.

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Actionable KPIs

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Actionable KPIs are KPIs that provide actionable insights for improvement. They are used to identify specific areas for improvement and guide decision-making.

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Example:

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Customer Complaint Resolution Time: Measured as the time it takes to resolve a customer complaint.

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Sales Conversion Rate: Measured as the percentage of sales leads that are converted into paying customers.

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Employee Turnover Rate: Measured as the percentage of employees who leave a company in a given period.

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Financial KPIs

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Financial KPIs are KPIs that measure the financial performance of a business. They are used to assess the financial health of a company and identify areas for improvement.

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Example:

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Revenue: Measured as the total income received by a company in a given period.

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Gross Profit: Measured as the profit a company makes after deducting the cost of goods sold.

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Return on Equity (ROE): Measured as the return on investment for shareholders.

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Debt-to-Equity Ratio: Measured as the ratio of debt to equity in a company's finances.

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Outcome KPIs

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Outcome KPIs measure the results or consequences of actions taken by a business. They are used to evaluate the overall impact of a business on its customers, employees, and stakeholders.

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Example:

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Return on Investment (ROI): Measures the amount of profit or loss generated as a result of a business decision.

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Customer Lifetime Value (CLV): Measures the total amount of money a customer is expected to spend on a business over their lifetime.

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Net Promoter Score (NPS): Measures customer loyalty and their likelihood of recommending a business to others.

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FAQs

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What are the different types of KPIs?

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There are 12 different types of KPIs: Qualitative KPIs, Quantitative KPIs, Leading KPIs, Lagging KPIs, Input KPIs, Output KPIs, Process KPIs, Practical KPIs, Directional KPIs, Actionable KPIs, Financial KPIs and Outcome KPIs.

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Which type of KPI is best for my business? 

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The most relevant type of KPI depends on business goals, industry, and audience. A combination of qualitative and quantitative KPIs is ideal for a comprehensive understanding of business performance.

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What is the difference between qualitative and quantitative KPIs?

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Qualitative KPIs measure non-numeric values or attributes, such as customer satisfaction, employee morale, and brand image. 

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Quantitative KPIs, on the other hand, measure numeric values or data, such as sales, revenue, profit, and growth.

The key difference between the two types of KPIs is that qualitative KPIs measure subjective aspects of a business, while quantitative KPIs measure specific, objective aspects of a business.

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