What does KPI mean?

Dennis Benjak

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Definition

KPI is an abbreviation for “Key PerformanceIndicator“. These key figures are indicators for measuring success in a wide range of areas.

KPIs are always defined individually and are indispensable for the analysis of any company development, such as profitability or liquidity.

KPI in online trade

Every success has to be recorded somehow and measured by a KPI. These KPIs are determined using web analytics tools such as Google Analytics.

Here are a few examples of performance metrics from online retail:

  • Conversion Rate: This KPI is determined as follows: Number of purchases / total number of visitors x 100. To get comparative values one often uses benchmarks or figures from the past.
  • Bounce Rate
  • Orders per visitor
  • ….

Many KPIs overlap with those of search engine optimization. This makes it clear that SEO is a part of marketing.

KPI in the SEO

Values such as the bounce rate or the dwell time on web pages are just as important for search engine optimization.

Here is a brief overview of possible KPIs:

  • The PageRank: was one of the most important indicators in the SEO field. This measures the value of a page. This can be read out via the Google Toolbar. However, this has not been updated in over 5 years and has therefore lost relevance. Nevertheless, the Google algorithm still includes this value.
  • The visibility index: This performance indicator shows how well the corresponding website is linked and which positions it occupies with relevant keywords.
  • Bounce rate: is also one of the most important KPI in SEO. Basically, it is not good if the bounce rate is too high. However, this always depends on the side in question. It is not uncommon for a landing page to have bounce rates of 70-90%.
  • Link popularity tells how many backlinks a website has.
  • The domain popularity: is comparable to the link popularity. The difference, however, is that domain popularity also takes into account the quality of links, not just the number of links.
  • Social Signals: are mentions of popular pages from social networks.
  • ROI: Return on investment is also very important. The profit is related to the capital employed in order to determine the corresponding return on investment (ROI).
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