What does KPI stand for in business?

Key performance indicator

Businesses use KPI to stand for "key performance indicator." Each KPI tracks an important stat that aligns with an organization's goals. If the organization's "KPIs are good," it means they're achieving their goals. If their "KPIs are bad," it means they have some work to do.

Many businesses track KPIs related to sales, growth, efficiency, and customer satisfaction. For example, a hospital emergency room might track how quickly patients are seen upon arriving in the ER, and use that metric as a KPI. They might also survey patients to gauge their satisfaction, and use the compiled survey results as a KPI.


Our sales KPIs are good, but our customer retention KPIs are terrible. We're going to need to hire on in customer service
Executives often love analyzing KPIs
Executives often love analyzing KPIs

Related Slang


Updated February 17, 2023

KPI definition by

This page explains what the acronym "KPI" means. The definition, example, and related terms listed above have been written and compiled by the team.

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