Metrics, KPIs and Raw Data

Metrics and Key Performance Indicators (KPIs) are both used to measure business performance, but they have different characteristics and are used in unique ways. Raw data is the unprocessed data that is collected from various sources and is used to generate metrics and KPIs.

Raw data is the foundation of metrics and KPIs. It is the unprocessed data that is collected from various sources such as customer feedback, sales reports, website analytics, etc. Raw data is often too complex to be used directly in decision-making processes. Therefore, it needs to be processed and analyzed to extract meaningful insights.

Metrics are quantifiable measures used to gauge the performance or progress of specific business objectives or goals. They are specifically dedicated to ‘Key’ objectives and thus act as measurable benchmarks for long-term goals. Metrics contextualize raw data by looking at long-term trends or relationships between different variables. They provide a way to measure progress towards a goal or objective.

KPIs are a subset of metrics that are focused on results. They are quantifiable measures that help businesses track their progress towards achieving specific business objectives or goals. KPIs are specifically dedicated to ‘Key’ objectives and thus act as measurable benchmarks for long-term goals. A good KPI metric should act as a compass helping you and your team understand if you’re making the right decisions and heading the right way.

In summary, raw data is the foundation of metrics and KPIs. Metrics contextualize raw data by looking at long-term trends or relationships between different variables, while KPIs focus on results and help businesses track their progress towards achieving specific business objectives or goals.