Management KPIs – best practices

Why are KPIs for management important?

There are multiple KPIs that are important for management – not only to measure performance of the team, but also to better understand their business and their market environment. Most commonly, managers can use KPIs to track their teams’ productivity, or higher management could use KPIs to review the job performance of managers and ensure goal fulfillment. Furthermore, some KPIs can be used to compare sales, monthly revenue generation and customer acquisition rates, in order to make informed and data-driven business decisions and adjust their business strategy. KPIs are also essential to setting company goals and making progress toward their fulfillment.

Average revenue per user

How much your users spend on a subscription?
The Average Revenue Per User (ARPU) quantifies the amount of revenue generated on average from each customer. Typically, companies calculate ARPU on a monthly basis. Simply put, the metric tells you how much the average customer spends on each subscription. As ARPU is an indicator of the profitability of a product based on the amount of money that is generated from each of its users or subscribers, it is especially valuable for
Product KPI
Marketing Success

Average Revenue per Paying User (ARPPU)

What is your average revenue per paying customer?
Average revenue per paying user (ARPPU) is a metric used to assess the average revenue generated from a paying customer. Although similar to average revenue per user (ARPU), the rudimentary difference with ARPPU is that the calculation of it only involves active paying customers, not the company’s entire customer base. This metric is used to understand the profitability garnered from each paying customer and the company’s revenue-generating capabilities.

Month over Month growth (MoM)

What is your company’s monthly pace?
Month-over-Month (MoM) is the lowest unit of measurement used to objectively reflect the pace of growth in a firm. The basic MoM formula is applicable to anything from users to customers to revenue. Having a hold on our growth statistics is a task that should be implemented across all departments in your company, not simply the product and finance teams.

Year over Year growth (YoY)

A Marketing Qualified Lead (MQL) is a lead who has indicated interest in what your business has to offer based on marketing efforts or is otherwise more likely to become a customer than other leads. Example: Downloading trial software or free e-book

This metric is usually calculated alongside the average customer lifetime value (CLV), return on investment, or cost per action. These three combined will let you know how well you’re doing with your marketing budget. This can also help you with various business decision-making.