KPI stands for Key Performance Indicator, which is a measurable value used to evaluate the success of a company, department, or specific process in achieving its objectives. In subscription and billing management, they are used to measure and track performance against specific goals, identify areas for improvement, and make data-driven decisions. Examples of KPIs include sales revenue, customer satisfaction, and employee turnover rate.
They are used in a variety of settings like businesses, departments, projects, supply chain management, human resources and non-profit organizations. Here, they measure and monitor the success of their various operations, initiatives and goals. They track the progress of projects ensuring that they meet the objectives. They are used to monitor and improve various supply chain performances like on-time delivery, inventory turnover, and lead time. They also measure and monitor employee performance, satisfaction and turnover.
In subscription management platforms, KPIs provide a way to measure and track key aspects of the business. Some common KPIs for a subscription business are the Monthly Recurring Revenue (MRR), Customer Acquisition Cost (CAC), Lifetime Value (LTV), Customer Churn Rate, Average Revenue per User (ARPU) and Conversion Rates.
By tracking and monitoring these KPIs, a subscription and billing management business can identify areas for improvement, make data-driven decisions, and ultimately achieve its goals.
