Analytics measurement is often referred to as simply “KPI’s” by those in the business world. KPIs, or Key Performance Indicators, are essentially measurements we use to determine the health of a business process.For example, a fairly popular KPI in the world of retail is Return on Investment per Square Foot. That one is straightforward and easy to understand, but that’s after we determine whether a business needs it, and whether it’s being measured properly.
When it comes to measuring something, it’s vital that something is a process. We want to measure the outcome of a process, not a single event. What is a process? A process is a series of events which can be repeated to produce a desired result. The reason we want to measure a process is because we can look at each individual action within a process, and diagnose problems as needed. If a particular event within the process has slowed, or failed to produce the result we expect, then we can address it.