term: Key Performance Indicator
Key Performance Indicator Definition - Internet Marketing Glossary

Definition of Key Performance Indicator

A Key Performance Indicator or KPI is one of a small number of measurable quantities that represents the performance of an important business activity or the health of a business entity. For instance, profit margin is a KPI for any sales organization. For a website, there are several possible KPIs such as daily average visitors and bounce rate. Not all organizations and websites use the same KPIs.

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