Summary  
Describes a systematic framework for defining and evaluating performance metrics by applying the criteria of relevance, measurability, and actionability.

General domain of usage  
E-commerce

**Key Performance Indicators (KPIs)** are measurable values that demonstrate how effectively a product is achieving its key objectives.

Definition

Watch this video to see practical examples of how successful products select and use KPIs that align with their business objectives. You will learn how to evaluate KPIs for relevance, measurability, and actionability, and see real-world scenarios where the right KPIs drive product growth and improvement.

**Criteria for effective KPIs:** `relevance`, `measurability`, `actionability`.

**Example process for aligning KPIs with business and product objectives:**

1. **Define the overarching business goals;**
2. **Translate business goals into clear product objectives;**
3. **Identify user behaviors or outcomes that signal objective achievement;**
4. **Select KPIs that are directly measurable and actionable for those behaviors or outcomes.**

Note

Which of the following criteria are most important when selecting KPIs for your product?

Master the essential product metrics and growth KPIs that drive successful digital products. Learn to distinguish between vanity and actionable metrics, analyze user growth, retention, and revenue, and apply real-world analytics frameworks to inform product strategy.

Establish a solid understanding of product metrics, their importance, and how to select the right KPIs for your product.

Dive into the metrics that track user acquisition, activation, engagement, and feature adoption.

Analyze user retention, churn, and the financial health of your product.

Build and analyze conversion funnels, track events, and leverage experimentation for product improvement.

Connect metrics to product strategy and apply frameworks to real-world scenarios.

Choosing the Right KPIs