KPI Dashboard Metric Selector
Pick the right KPIs for your business dashboard based on goals, industry, and team function.
Formula
Metric Value = Importance × Actionability × Data Quality × Frequency Fit
Worked Examples
Example 1: Series A SaaS Dashboard
Problem:B2B SaaS, 50 customers, $500K ARR, 8 employees, just raised Series A. Focus: growth.
Solution:Primary KPIs (weekly review):\n1. MRR - Current: $42K, Target: $75K EOY\n2. MRR Growth Rate - Current: 8%, Target: 10%+\n3. New Customers/Month - Current: 4, Target: 8\n4. Net Revenue Retention - Current: 105%, Target: 110%\n\nSecondary (monthly):\n5. CAC Payback - Current: 14mo, Target: 12mo\n6. Pipeline Coverage - Current: 3x, Target: 4x\n7. Onboarding Completion - Current: 70%, Target: 85%\n\nNorth Star: MRR Growth Rate\n\nRationale: Early stage prioritizes growth over efficiency.\nCAC payback monitored but not optimized yet.
Result:7 KPIs | North Star: MRR Growth | Weekly MRR review | Quarterly efficiency check
Example 2: E-commerce Scale-Up
Problem:$20M revenue, 100K customers, profitable, focus on retention and efficiency.
Solution:Primary KPIs:\n1. Gross Margin - Current: 45%, Target: 50%\n2. Customer Lifetime Value - Current: $180, Target: $220\n3. Repeat Purchase Rate - Current: 30%, Target: 40%\n4. Customer Acquisition Cost - Current: $45, Target: $40\n\nSecondary:\n5. LTV:CAC Ratio - Current: 4:1, Target: 5:1\n6. Net Promoter Score - Current: 35, Target: 50\n7. Email Revenue % - Current: 25%, Target: 35%\n8. Return Rate - Current: 8%, Target: 6%\n\nNorth Star: Repeat Purchase Rate\n\nRationale: Profitability phase requires efficiency.\nRetention drives both LTV and margin.
Result:8 KPIs | North Star: Repeat Rate | Focus: retention + margin
Example 3: Marketplace Launch
Problem:New marketplace, 500 sellers, 2K buyers, pre-revenue, focus on liquidity.
Solution:Primary KPIs:\n1. Liquidity Rate - Listings with transaction within 30 days\n2. Buyer Activation - % completing first transaction\n3. Seller Activation - % with first sale within 14 days\n4. Match Rate - Searches resulting in contact/purchase\n\nSecondary:\n5. GMV Growth - Gross transaction value\n6. Repeat Transaction Rate - Both sides\n7. Time to First Transaction\n8. Seller Quality Score\n\nNorth Star: Liquidity Rate\n\nRationale: Marketplace success requires matching supply and demand.\nRevenue (take rate) optimized later.\nBalance buyer and seller metrics to avoid chicken-egg trap.
Result:8 KPIs | North Star: Liquidity | Balance buyer/seller metrics
Frequently Asked Questions
What makes a good KPI?
Good KPIs are: Specific (clearly defined), Measurable (quantifiable), Actionable (you can influence them), Relevant (aligned to goals), and Time-bound (tracked over consistent periods). They should drive behavior, not just report status. Limit to 5-7 core KPIs to maintain focus.
How many KPIs should a dashboard have?
Executive dashboards: 5-7 KPIs maximum. Operational dashboards: 10-15 metrics across categories. Too many KPIs dilute focus and create 'metric fatigue.' Organize in hierarchy: 3-5 North Star metrics, supported by diagnostic metrics you drill into when problems arise.
What is a North Star metric?
The single metric that best captures customer value delivered. Examples: Airbnb = Nights Booked, Facebook = Daily Active Users, Slack = Messages Sent. North Star guides prioritization and aligns teams. It should: correlate with revenue, reflect product value, and be influenceable by teams.
How do I set KPI targets?
Methods: historical baseline + improvement %, competitor benchmarking, investor expectations, bottom-up from initiatives. For new metrics, start with 'directional' targets (improve from baseline), then refine as you gather data. Review and adjust quarterly.