← Data Analytics learning pathData Analytics · Module 6 of 10
Business metrics and KPIs
Measure what matters to the business.
📖 Key ideas
- KPIs track progress toward goals: revenue, conversion rate, churn.
- Funnel metrics: visitors → sign-ups → purchases.
- Customer metrics: CAC (acquisition cost), LTV (lifetime value), retention.
- Leading indicators predict; lagging indicators confirm.
- Choose few, clear KPIs.
💡 Real-life example: KPIs are a car's dashboard lights: a few vital signs tell you if the journey is going well.
KPIKey Performance Indicator
Churn rateShare of customers who leave
CACCustomer Acquisition Cost
LTVCustomer Lifetime Value