Maybe you’ve seen the acronym KPIs while researching how to improve your online store, or maybe it’s the first time you’ve come across it and you want to know what the KPIs meaning is and why they are so important for a business. Whatever the case, this article is for you.

What Are KPIs?

KPIs, or Key Performance Indicators, are measurable values that companies use to set goals, track their progress, and identify improvement opportunities. It’s a clear and efficient way to demonstrate whether you are achieving your objectives or not. KPIs are crucial to obtain an overview of how your business is performing in a specific period according to the goals you have set.

You have likely heard about the CTR (click-through rate), which is the number of clicks that a link obtains to its number of impressions, about the ATP (Average Time on Page), which shows the average time that visitors spend on a single page, or the bounce rate, which is the percentage of visitors who abandon a website without taking any action. These are some of the most common metrics for a website, so it’s important that you take them into account.

Types Of KPIs

These are some KPIs examples among the different types that you can find. You’ll probably use some more than others, depending on the area and size of your business, but it is important that you know them well. This way, you can select and combine those that are most useful to you to get the most out of them.


Financial KPIs are metrics that can track the progress of financial goals and overall financial performance. They are ideal for having insights about how you use your business resources and the revenue generated, and to be able to optimize your profit.

Some examples of financial KPIs are Revenue Growth, which measures the rate at which a business is growing its revenue over time, and Return on Investment (ROI), which measures the amount of return generated on a particular investment relative to the cost of the investment.


Customer KPIs are metrics that allow us to know customer satisfaction and loyalty, in order to work on areas that need improvement.

Some important Customer KPIs are Customer Satisfaction Score (CSAT), which measures the level of satisfaction that customers have with a particular aspect of your business and is usually measured through surveys, and Customer Lifetime Value (CLV), which measures the total amount of revenue that a customer is expected to generate throughout their relationship with your business.


Operational KPIs measure the efficiency and effectiveness of several processes within your business, analyzing their performance to identify opportunities for improvement.

Among the most important Operational KPIs are Capacity utilization, which measures the percentage of available capacity used to produce output, and Cycle time, which measures the time it takes to complete a process.


Employee KPIs are metrics that are used to evaluate the performance of your employees. If you have an online store to earn passive income, it’s possible that you do not have employees. Still, it’s important to know some of these metrics in case your business grows.

For example, one of them is Sales Per Employee, which evaluates an employee’s ability to generate revenue for the business, and Employee Satisfaction, which measures the level of job satisfaction of employees.Man with a computer

Why Are KPIs Important?

It is undeniable that KPIs are essential to measure how efficiently a business is running, whether objectives are being met in a timely manner, and how satisfied your customers are. Specifically, these are the benefits of KPIs that you should take into account the most and the reasons why they will be useful to you:

To Set Goals And Track Them

By establishing certain KPIs, you can have a better idea of what goals to set and how to achieve them. Additionally, tracking metrics will allow you to track their progress and even intervene to make any necessary adjustments if you notice that they are deviating from the intended course. If you work as a team, setting these KPIs will allow you to share objectives and join forces to work more efficiently.

To Gain Insight About Your Business’ Health

The KPIs mentioned in the previous section (Financial, Customer, Operational, Employee) are essential to check the health of your business. It’s through them that you will be able to realize if everything is going well or if you should worry. Make sure you choose the most important ones for your store and follow them regularly.

To Measure Your Progress

KPIs can be used to determine if a business is meeting its goals. Some very clear examples are revenue growth, CTR, or the number of visits to your site. By setting specific and measurable indicators, you will always have a way to know if you are on track to achieve your goals or if there is still room for improvement in your business.

To Identify Weaknesses

KPIs allow you to have insights into different aspects of your business. Therefore, they can also give you information about what your strengths and weaknesses are. This way, you will be able to make timely and informed decisions to strengthen the areas that work well and improve those that need it.

To Enable Data-Driven Decision-Making

By monitoring the specific information provided by the KPIs, the subsequent analysis of this information will allow you to make well-informed data-driven decisions. This will reduce the risk of taking riskier actions or actions based on inaccurate information that could harm your business while helping you achieve improvements more efficiently.

To Get Accountability

KPIs regarding your employees or collaborators, if you have them, can be essential to avoid making inaccurate decisions about their performance. Not only is it a way to ensure accountability in your assessment, but also that your employees or collaborators deliver verifiable good results.

To Boost Morale

Achieving goals and meeting objectives can be motivating not only for you but also for the team you work with if you have one. Sharing progress and achievements helps create a more positive environment that encourages continued productive performance. KPIs are a tangible way to measure and show these achievements.



These are just some of the reasons why working with KPIs can benefit your online store. We are sure that, over time, you will discover many more.

Remember that, if you create your merch store in Vexels, you will have different analytics available with the most relevant metrics. You can also integrate your own analytics and find marketing tips and advice!