What is a KPI?
KPI stands for Key Performance Indicator.
The KPIs indicate fundamental quantitative values (in number or percentage), that allow the evaluation of strategies and the measurement of their results. These indicators are, therefore, essential to monitor and evaluate the performance and success of the outlined strategies.

What is the difference between metrics and KPIs?
Applied to digital marketing, a metric is an indicator of a certain behavior, raw information that allows you to measure and manage strategies. We can take as an example of a metric the number os visits to the website.

A KPI on the other hand, indicates the result of an action, and is created from a metric. These indicators help to mathematically explain the result of an action. The sales conversion rate is an example of a KPI.

Characteristics of a good KPI
According to Neil Patel, the definition of a good performance indicator must follow the following criteria:

Be possible to measure
To choose a KPI it is necessary that it is available so that it can be measured and analyzed.
For example, it is only possible to quantify the conversion rate when sales actually start to happen.

Importance to the business
Permorance indicators show whether your strategies are producing the desired results.
If your brand is growing and selling more, then key indicators should reflect that growth.

Relevance
The KPIs you choose should be relevant and not just numbers that are pleasant to present. An example of this type of numbers are comments and likes on social networks, which no matter how positive they may be, end up not representing a relevant indicator.

Helping with smart choices
The choice of performance indicators should help you make the right and smart choices.

Periodicity
It is important to choose a KPI that can be analyzed periodically so that it is possible to monitor and analyze the results, allowing periodic decisions to be made according to the needs.

Types of KPIs
KPIs can be divided into 3 categories: primary, secondary and practical

Primary
Primary indicators are key indicators for your objective and that demonstrate that the strategy adopted is producing results, such as the conversion rate or the number of leads.

Secondary
Secondary indicators are used to monitor the results from the primary indicators, and which demonstrate which ones are delivering good results and which are not. An example of a secondary indicator are newsletter subscriptions.

Practical
The practical KPIs have the function of explaining the results indicated by the primary and secondary indicators, such as the keywords used to find the website's page.

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