KPIs are specific and actionable metrics that matter to the overall growth of your business.

How do you create a KPI? First you need to identify the main goals of your company or organization.

KPIs are tied to each of these goals as the item you want to track that will indicate progress toward that goal.

Good KPIs meet the following criteria:

• Available and measurable - Something you have access to and that is quantifiable.
• Impacts your bottom line - If you can't trace it back to your revenue it probably doesn't matter.
• Relevant and actionable - If it impacts your bottom line then it's relevant, and you should also be able to act on it.

A good example of this is customer acquisition.

A clear KPI in this case would be cost of acquisition. You can measure this through ads where each new customer adds their Lifetime value to your bottom line and it's relevant and actionable (buy more ads).