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key insights: what are three types of key performance indicators

Key Insights: What Are Three Types of Key Performance Indicators?

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There are three types of key performance indicators (KPIs): financial, customer, and operational. Financial KPIs measure a company’s financial health, such as profitability and revenue growth. Customer KPIs track metrics related to customer satisfaction, such as customer churn rate and net promoter score. Operational KPIs monitor operational efficiency and effectiveness, such as employee productivity and inventory turnover.

Quantitative Indicators. Quantitative indicators are the most straight-forward KPIs

1. Number of new clients 2. Sales revenue 3. Net profit

4. These are all examples of quantitative indicators that can be used to measure the performance of a business. 5. While quantitative indicators are useful for measuring certain aspects of performance, they do have some limitations. 6. For one, they can be difficult to compare across different businesses due to differences in accounting practices and reporting standards. 7. Additionally, they can be lagging indicators, meaning that they only provide information on past performance and may not be indicative of future trends.

Qualitative Indicators. Qualitative indicators are not measured by numbers

Qualitative indicators are important pieces of data that help organizations understand how well they are achieving their goals. They provide context and insights that can not be gleaned from quantitative indicators alone. While quantitative indicators give a snapshot of what has happened in the past, qualitative indicators can help predict what will happen in the future.

There are three main types of qualitative indicators: leading, lagging, and coincident. Leading indicators are those that tend to change before the overall economy does. Lagging indicators change after the economy has already begun to turn. Coincident indicators move alongside the economy.

Leading indicators can be helpful for businesses when making decisions about hiring, investment, and production levels. For example, if consumer confidence is high, it may be a good time to ramp up production or expand into new markets. On the other hand, if leading economic indicator show signs of weakness, it may be time to cut back on expenses or slow down growth plans.

Lagging economic indicators can provide valuable insights into whether an organization’s current performance is likely to continue into the future. For example, if unemployment is high, it may take some time before consumer confidence and spending picks back up again (even though this may eventually happen). As such, lagging economic data can help businesses plan for short-term bumps in the road as well as long-term trends.

Lagging Indicators

Leading Indicators: A leading indicator is a statistic that predicts future economic activity. Leading indicators are often used to predict changes in the business cycle and can be used to help make investment decisions. Many economists believe that gross domestic product (GDP) growth is a leading indicator of economic activity. Other common leading indicators include measures of consumer confidence, housing starts, and stock market indexes.

Lag/Lead Indicators: A lag/lead indicator is a type of statistic that can be used to predict future economic activity. Lag/lead indicators are created by combining both lagging and leading indicators into one metric. This type of indicator can be useful for forecasting purposes as it captures both aspects of future economic activity.

Input Indicators

Input indicators are the most basic type of KPI. They measure how much of a resource is being used to achieve a particular goal. For example, if you’re trying to increase sales, an input indicator would be the number of sales calls made.

Output indicators are a bit more complex. They measure the results of all the inputs in order to gauge how effective they are. For example, if you’re trying to increase sales, an output indicator would be the total revenue generated from those sales calls.

Finally, impact indicators measure the ultimate goal of your efforts. In our example, this would be customer satisfaction or brand awareness. Impact indicators help you determine whether or not your inputs and outputs are actually having the desired effect on your target audience.

Process Indicators

Process indicators are lagging indicators that show whether a process is on track to meet its goals. Lead time, defects per unit, and cycle time are all examples of process indicators. While process indicators can be helpful in assessing whether a process is meeting its goals, they can not be used to improve the process itself. For that, you need to look at other types of KPIs.

Output Indicators

In business, there are three types of KPIs or output indicators that management and analysts use to measure organizational performance: lagging indicators, leading indicators, and key drivers.

Lagging indicators are those that show whether the organization has achieved its desired outcome. Examples include financial measures such as net income, return on investment (ROI), and earnings per share (EPS). While lagging indicators are important in assessing past performance, they provide little insight into what needs to be done to improve future results.

Leading indicators, on the other hand, can help predict future outcomes. For example, measures of customer satisfaction, employee turnover rates, and new orders received are all leading indicators. By analyzing these types of data points, organizations can take proactive steps to avoid potential problems down the road.

Finally, key drivers are those factors that directly impact an organization’s bottom line. Examples include market share, production levels, and operational efficiency. By monitoring these metrics closely, management can make strategic decisions that will have a direct impact on the organization’s profitability.

Practical Indicators

There are three types of indicators that can be used to measure organizational performance: financial indicators, operational indicators, and non-financial indicators. Financial indicators focus on an organization’s bottom line and include measures such as profitability, return on investment (ROI), and cash flow. Operational indicators focus on an organization’s internal processes and include measures such as productivity, quality, customer satisfaction, and employee turnover. Non-financial indicators focus on intangible factors that can impact an organization’s long-term success and include measures such as brand awareness, employee engagement, social media engagement, and sustainability.


Jeremy is a SEO and web traffic specialist with years of experience in lead generation, sales, copywriting, and conversion optimization. He has helped countless businesses grow their online presence and increase their sales. His passion is helping businesses succeed online and he is always looking for new ways to improve his craft. He loves sharing his experience through articles and videos to help people achieve their marketing and sales goals.