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What is a KPI (Key Performance Indicator)?

KPI (Key Performance Indicator) — TAP-ONE Glossary

A specific, measurable metric used to track progress toward a business goal.

Last updated: 8 August 2026

A KPI (Key Performance Indicator) is a specific, trackable number chosen to measure progress toward a defined goal — monthly Google review count, website conversion rate visible in Google Analytics (opens in new tab), or repeat customer percentage. Good KPIs are specific, measurable, and directly tied to a business outcome, not vanity metrics.

Fewer, Better KPIs Beat a Long List

Tracking a dozen different numbers every week tends to produce less real insight than watching three or four that are actually tied to revenue or growth, since attention and time to act on the data are both limited. Picking a small, specific set — review growth, conversion rate, repeat visit percentage — and reviewing it consistently beats a sprawling dashboard nobody has time to interpret.

A KPI is only useful if someone actually looks at it on a schedule — a metric tracked but never reviewed provides no more value than one never measured at all.

People also ask

What KPIs should a local business track monthly?

Review volume and average rating, website or profile conversion rate, and repeat customer percentage are three of the highest-value KPIs for most local businesses to review monthly.

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