Adora Cheung - How to Set KPIs and Goals

TL;DR

The video defines a primary KPI as a single quantitative lagging indicator that captures value delivered (revenue or active users) and provides a feedback mechanism for iteration. Revenue, especially MRR, is the best metric because paid users give more serious feedback.

Key insights

• A primary metric must be a single quantitative measure – if you had to bet the whole company on one number, that’s it. Multiple metrics add only marginal accuracy but cause loss of focus.
• Good primary metrics have four characteristics: quantify value delivered (money or time), capture recurring/enduring value, are a lagging indicator (value already occurred), and are usable as a quick
• The two viable primary metric choices are revenue (preferred) and active users. Revenue is best because paying users are more serious and give better feedback than free users.