Difference between KPI and KRI
Posted: Tue Jan 28, 2025 10:55 am
Key Performance Indicators (KRIs) – measure the results of those actions that directly affect the achievement of goals. KRIs determine whether success has been achieved, but do not provide information on how the result can be improved.
Key Performance Indicators (KPIs) – identify actions and events that impact profits. Help determine what needs to be done to increase productivity.
BLOOD
KPI
→ Financial and non-financial (revenue, profit, customer complaints, etc.)
→ Only non-financial (conversion rate, number of sales, qatar rcs data number of deliveries, etc.)
→ The result of many team actions
→ The result of one action or actions of one team
→ Shows the summary
→ Provides information on what actions need to be taken to achieve goals
Let me remind you: it is imperative to consider that goals should be SMART – specific, measurable, relevant, achievable and time-bound. Not “make a profit of 30 million”, but “sell 50 VIP packages per month”. If the goal is set incorrectly, its assessment may also be erroneous.
Visual guide to defining KPIs
A metric that will analyze these indicators and meet all criteria will be a KPI.
What metrics to use instead of vanity metrics
For every vanity metric, there are actionable indicators that show the real picture of what is happening in the business.
Key Performance Indicators (KPIs) – identify actions and events that impact profits. Help determine what needs to be done to increase productivity.
BLOOD
KPI
→ Financial and non-financial (revenue, profit, customer complaints, etc.)
→ Only non-financial (conversion rate, number of sales, qatar rcs data number of deliveries, etc.)
→ The result of many team actions
→ The result of one action or actions of one team
→ Shows the summary
→ Provides information on what actions need to be taken to achieve goals
Let me remind you: it is imperative to consider that goals should be SMART – specific, measurable, relevant, achievable and time-bound. Not “make a profit of 30 million”, but “sell 50 VIP packages per month”. If the goal is set incorrectly, its assessment may also be erroneous.
Visual guide to defining KPIs
A metric that will analyze these indicators and meet all criteria will be a KPI.
What metrics to use instead of vanity metrics
For every vanity metric, there are actionable indicators that show the real picture of what is happening in the business.