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KPIs – what are they and what do I need them for?

KPIs. You hear them all the time, you read about them everywhere. And at first, it all sounds rather like big business, financial control and a nightmare of spreadsheets. But even for small businesses, coaches, start-ups and vegan producers, KPIs – or Key Performance Indicators – are a real game-changer. Why? Because they mean you’re finally no longer working in the dark, but have your goals right there in black and white.

Category

Marketing

Author

Katrin Tindler-Kempen

KPI – what is that please?

KPI stands for Key Performance Indicator, i.e. a key metric that helps you measure whether you’re achieving your business objectives. It sounds a bit dry, but it’s actually quite useful. That’s because KPIs not only give you an overview of the current situation, but also show you where your business is heading – or where it’s currently going round in circles. Entrepreneurs should know their KPIs as well as they know their own bank balance.

These numbers help you make informed decisions – and not just based on gut feeling. For example, if you know that 1 in 100 website visitors buys, you can calculate how many visitors you need to achieve your desired revenue. And that in turn determines your marketing budget – and not your goodwill.

KPIs briefly explained:

  • KPI = Key Performance Indicator

  • Shows you how well (or badly) you are achieving your goals

  • Makes your growth measurable – and controllable

Why KPIs make your team more focused

Many entrepreneurs make the mistake of setting goals – but failing to measure them. It’s a bit like saying: „I want to grow!“ – but where to, how quickly, with whom and why? This is exactly where KPIs come in. They ensure that everyone in the team is pulling in the same direction. Whether it’s the next social media campaign or a website relaunch: KPIs show what really matters.

When everyone knows what matters – for example, a lower bounce rate or more newsletter sign-ups – resources are no longer wasted, but put to good use. KPIs are therefore not tools for control freaks, but genuine efficiency boosters. And yes: they also help with setting priorities – without getting bogged down.

KPIs bring focus because they ...

  • ... set clear priorities in the team

  • ... quickly visualise weak points

  • ... show what works well – and what doesn't

Goals and the associated KPIs

A target without a KPI is like a compass without a needle. To help you understand the principle, here are a few typical targets with corresponding KPIs. Important: Every KPI must be measurable, relevant and reviewed regularly – otherwise it’s of no use to you.

  1. Target: 20 % more website visitors in six months
    → KPIs: Daily visitor numbers, traffic sources, ad CTR, bounce rate

  2. Target: 10 % more sales in the next quarter
    → KPIs: number of daily orders, conversion rate, basket size

  3. Objective: Increase the conversion rate by 4 %
    → KPIs: Shopping basket abandonment, checkout time, conversion rate per landing page

Typical KPI types at a glance:

  • Sales KPIs: Turnover, average basket value, repeat purchase rate

  • Marketing KPIs: click-through rate, reach, engagement rate

  • Website KPIs: bounce rate, time on site, conversion rate

Why KPIs make growth visible and controllable

Growth does not happen by chance – but through strategy. And KPIs are your strategic torch in the digital tunnel. Whether you want to increase your turnover or simply work more efficiently: With the right KPIs, you can recognise where things are going wrong at an early stage. And you can take immediate countermeasures. This saves you nerves – and money.

If, for example, after a website relaunch you notice that the dwell time decreases and the bounce rate increases, you know: Something is wrong here. Maybe it takes too long to load or the texts are not to the point. Without KPIs, you would have noticed this much later – or not at all.

Typical use cases for KPIs:

  • New landing page? → How does it perform compared to the old one?

  • Social ads running? → How high is the return on ad spend?

  • Shop restructured? → Does the conversion rate change?

Conclusion

KPIs are not a trend, they are your navigation system. Whether you want to scale your vegan food start-up or set up your coaching business more efficiently – with the right KPIs, you can plan, analyse and optimise on a sound basis. And you'll immediately realise whether your measures are paying off or not. So: set KPIs, check them regularly – and move your business forward step by step.

Katrin Tindler-Kempen

Katrin Tindler-Kempen

Owner, branding and marketing expert

I’m Katrin – founder of 2bu design, branding and marketing consultant, design nerd and committed vegan. I help sustainable, ethical and values-driven businesses to raise their profile – without greenwashing, empty buzzwords or generic marketing hype.

My career has taken me to agencies including MetaDesign, frog, GREY, Publicis and milla&partner. There, I had the opportunity to work with international brands and on projects that have won various awards.

When I'm not working on strategies, designs or brand identities, I'm probably lost in interior design inspiration, vegan recipes or far too many open browser tabs at the same time. Creative chaos with a system. Most of the time, at least.