25 Essential KPIs for Business Health: Insights from Leaders
Discover the key performance indicators that can make or break your business success. This article presents essential KPIs across various industries, backed by valuable insights from seasoned leaders. From client feedback velocity to signed purchase contracts, learn which metrics truly matter for your organization’s health and growth.
- Track Client Feedback Velocity
- Measure Match Success Rate
- Monitor Patient Retention Rate
- Focus on User Activation
- Analyze Operating Cash Flow
- Evaluate Domain Authority Growth
- Assess Project Turnaround Time
- Track Industry Placement Rate
- Monitor Net Revenue Expansion Ratio
- Analyze Customer Acquisition Cost to Lifetime Value
- Measure Admission-to-Completion Ratio
- Calculate Customer Lifetime Value
- Evaluate Gross Margin per Placement
- Gauge Employee Engagement Levels
- Monitor Customer Churn Rate
- Assess Repeat Client Rate
- Measure Property Closing Speed
- Track Monthly Active Users
- Analyze Days on Market
- Monitor Lead-to-Conversion Rate
- Calculate Average Order Value
- Measure Net Promoter Score
- Evaluate Cost per Qualified Lead
- Track Conversion Rates
- Count Signed Purchase Contracts
Track Client Feedback Velocity
One KPI I track as the owner and President of Green Lion Search is ‘client feedback velocity’ — the average time it takes a client to respond to candidate submissions or provide feedback during the hiring process.
This metric is crucial because it helps predict placement speed and success. When clients are slow to respond, top candidates often disengage or accept other offers. It also reveals how engaged and motivated the client is. If a client is consistently unresponsive, it may be a sign that we need to reassess the partnership. Tracking this KPI also helps guide where we allocate our resources; high-velocity clients are more likely to result in successful placements, so we can prioritize them. Lastly, it improves the candidate experience, which protects our reputation. When clients move quickly, the entire process runs smoother and more professionally.
While well-known KPIs like time-to-fill, submittal-to-interview ratio, and placement rate are essential for measuring performance, it’s just as important to track industry-specific KPIs that reflect the nuances of your business. In a relationship-driven field like recruiting, these metrics can provide early warnings about process breakdowns or client misalignment. These kinds of KPIs offer a more accurate picture of how efficiently and effectively a recruiting firm is operating within its niche, allowing for smarter decisions and long-term success.
Michael Moran
Owner and President, Green Lion Search
Measure Match Success Rate
At Fulfill.com, our North Star KPI is what we call our “Match Success Rate” – essentially measuring how often we successfully connect eCommerce businesses with 3PL partners that meet their needs and maintain the relationship beyond 12 months.
This metric has been transformative for our business. When I founded Fulfill.com after my experiences in both the eCommerce and logistics spaces, I noticed that finding the right 3PL partner was often like throwing darts blindfolded. Our Match Success Rate illuminates whether we’re truly solving that problem.
What makes this KPI powerful is that it’s a lagging indicator of several critical business functions. It tells us if our vetting process for 3PLs is rigorous enough, if our needs assessment for merchants is comprehensive, and if our matching algorithm is considering the right factors. When we see this metric dip, we dig into these components to identify improvements.
For instance, last year we noticed a slight decline in Match Success Rate for high-SKU beauty brands. Our data showed these merchants needed specialized batch tracking capabilities that weren’t being properly weighted in our matching process. We adjusted our algorithm and saw these partnerships stabilize almost immediately.
We slice this data geographically, by merchant size, product category, and fulfillment complexity. This granularity helps us identify both broad trends and specific areas needing attention. It guides our resource allocation and product development roadmap.
What I love about this KPI is that it perfectly aligns our business success with customer success – when our matches work long-term, merchants scale their operations, 3PLs grow their business, and we build a sustainable marketplace. It’s helped us maintain a 94% retention rate while scaling to thousands of successful matches.
For any marketplace business, finding that single KPI that reflects both sides of your platform’s health is absolutely critical.
Joe Spisak
CEO, Fulfill.com
Monitor Patient Retention Rate
Patient retention rate is my north star KPI—tracking how many patients renew their $89/month DPC membership annually. This metric reveals everything: 95% retention means patients value unlimited access over insurance hassles, while drops below 85% signal communication breakdowns or unmet expectations. When retention dipped to 82% last year, I discovered patients wanted evening hours, so we extended availability until 8 PM and retention jumped to 97%. High retention drives predictable revenue ($200K+ annually) and proves we’re delivering genuine healthcare relationships instead of transactional medical encounters. That’s how DPC brings care back to you.
Wayne Lowry
Founder, Best DPC
Focus on User Activation
One key performance indicator we’ve relied on at Carepatron is user activation. It’s not just about signups or traffic. It’s about whether people are actually getting value from the product early on. For us, that usually means a clinician has created a client, scheduled an appointment, sent a form, or completed a note within the first few days.
This KPI gives us a clear signal about product-market fit in real time. If activation rates drop, it tells us something in the onboarding flow isn’t landing. Maybe the messaging is off, maybe there’s friction in setup, or maybe we’re attracting the wrong audience. On the flip side, if activation is strong, we know we’re solving a real problem and the experience is resonating.
We track it daily, review it weekly, and use it to guide both product and marketing decisions. It shapes everything from how we design our onboarding journey to how we structure our support and outreach. When activation is healthy, growth compounds. When it’s not, it doesn’t matter how many new users are coming in because they won’t stick.
That’s why we focus on it. It’s one of the fastest ways to tell whether what we’re building is actually helping people do their work better. And that’s what really matters.
Jamie Frew
CEO, Carepatron
Analyze Operating Cash Flow
One of the most critical KPIs I monitor is Operating Cash Flow (OCF). While revenue and net income provide high-level snapshots, OCF gives me a direct measure of how much cash is being generated from our day-to-day operations. For a mission-driven organization like ours—funded through a mix of grants, donations, and earned income—this metric is essential. It cuts through non-operating inflows and accounting adjustments, offering a clear, real-time view of financial health and operational efficiency.
OCF supports my core responsibilities: ensuring liquidity, managing cash reserves, and guiding capital allocation. When OCF trends positive over time, we can strategically reinvest into high-impact programs, plan for hiring, or expand our editorial and digital capabilities. If OCF turns negative, it signals the need to reassess expense management, tighten receivables, or delay discretionary spending.
It also informs decisions about external funding. If our core operations aren’t generating sufficient cash, I know it’s time to explore grants or partnership revenue—not just to cover short-term needs but to prevent structural cash flow gaps.
In short, OCF is my financial control panel. It enables me to assess sustainability, manage risk, and align financial planning with organizational goals. It’s the KPI I rely on to make confident, informed decisions that support both immediate stability and long-term growth.
Rose Jimenez
Chief Finance Officer, Culture.org
Evaluate Domain Authority Growth
One KPI we monitor closely at PressRoom.ai, both for ourselves and for our clients, is Domain Authority (DA)/Domain Rating (DR). While it’s not a Google ranking factor, it’s one of the clearest directional signals of how healthy your site’s backlink profile is, and how trusted your content appears in the broader ecosystem. As a boutique SEO agency, a rising DR doesn’t just validate our own strategies. It’s also a powerful trust signal for prospective clients evaluating whether we practice what we preach.
Here’s why we track it and how we act on the insights:
Backlink quality = long-term SEO equity.
A rising DR usually means you’re consistently earning links from high-authority, relevant sources, not spammy directories or link farms. We don’t chase numbers for the sake of it. We evaluate who is linking, why they’re linking, and whether it aligns with our brand and topical authority.
It reflects the strength of our content and partnerships.
Every time a client, publisher, or thought leader links to us organically, it tells us our content strategy is resonating.
We use it as a lead indicator of future ranking potential.
A growing DR tends to correlate with increased ranking velocity for new content, especially in competitive verticals.
Advice: Use DR as a portfolio-level metric, not page-level. It’s your domain’s reputation score, and a high one demonstrates the trustworthiness and high-quality content it has.
At PressRoom.ai, Domain Rating isn’t just a vanity metric—it’s a strategic compass. It tells us whether we’re earning trust, building digital authority, and positioning ourselves (and our clients) to win long-term in organic search.
Amber Wang
Co- Founder & Data Scientist, PressRoom AI
Assess Project Turnaround Time
For me, one of the most telling KPIs is average project turnaround time. It’s a somewhat unsexy metric, but it cuts through the noise. It tells me how efficient we are, where bottlenecks creep in, and whether we’re actually delivering at the pace our clients expect (or better).
If that number starts creeping up, I know we’re either under-resourced, stuck in feedback loops, or not scoping things properly at the outset. It’s also a good early warning sign of burnout in the team – or of clients going silent and slowing things down. Either way, it’s a signal to investigate.
We’ve made big decisions based on this – adjusting workloads, tightening up our briefing process, and in some cases, deciding not to pitch for certain types of projects if we know they’re going to drag timelines out or cause friction. So while it’s not a flashy sales or profit metric, it’s one of the clearest indicators of whether the engine is running smoothly or about to overheat.
Jm Littman
CEO, Webheads
Track Industry Placement Rate
One key performance indicator (KPI) that has been instrumental for us at ASM Group of Institutes is the Industry Placement Rate. This KPI measures the percentage of our graduates who secure jobs in their field of study within six months of graduation. It reflects the effectiveness of our curriculum, industry partnerships, and career services. By tracking this rate, we gain insights into how well our educational programs align with industry demands.
For example, when we saw a 15% dip in placement rates in a particular year, we quickly identified a gap in the skills our students were acquiring. As a result, we adjusted our curriculum and increased our industry collaboration to ensure students were better prepared for real-world challenges. The following year, our placement rate increased by 18%, showing the positive impact of these changes.
This KPI helps us stay focused on our mission of preparing students for successful careers in business analytics and beyond.
Saurabh Kulkarni
Digital Marketing Head, ASM Group of Institutes
Monitor Net Revenue Expansion Ratio
One of the most important metrics I use to track the health of our business is the Net Revenue Expansion Ratio (NRER). This KPI measures how much our existing customer base is growing or shrinking over time by looking at upsells, cross-sells, and churn. If our NRER is above 100%, it means our existing customers are expanding their use of DualEntry faster than we’re losing revenue from downgrades or churn. That tells me our product is delivering value, and we’re successfully growing within accounts.
On the other hand, if NRER drops below 100%, it’s a signal that we’re not keeping customers happy or expanding their usage, so I’ll dig into the reasons—maybe it’s product gaps, support issues, or something else. Ultimately, I use NRER to focus our team on delivering more value to customers and making sure we’re building a sticky product that grows with them.
Santiago Nestares
Cofounder, DualEntry
Analyze Customer Acquisition Cost to Lifetime Value
Customer Acquisition Cost to Lifetime Value ratio (CAC:LTV) is an important KPI I rely heavily on as a CFO. As a digital media company dependent on audience growth and monetization through advertising, affiliate partnerships, and potential subscriptions, this metric gives me a clear read on whether we’re scaling efficiently and sustainably. CAC tells me how much we spend to bring in each new user; LTV tells me how much revenue that user will ultimately generate. The ratio between them is what helps me make key strategic decisions across budgeting, marketing, and overall growth.
A strong CAC:LTV ratio signals that our marketing spend is paying off and that each user contributes positively to long-term profitability. If the ratio begins to skew—whether due to rising CACs or declining LTVs—I know it’s time to adjust: reevaluate acquisition channels, optimize spend, or strengthen user retention and monetization efforts.
Beyond just a growth indicator, CAC:LTV is a lens through which I evaluate financial health, operational efficiency, and readiness to reinvest in audience acquisition. It’s also a key signal to stakeholders—internal and external—that we’re building a resilient, scalable business grounded in sound unit economics.
In short, CAC:LTV isn’t just a marketing metric—it’s a CFO’s guidepost for sustainable growth.
Wes Lewins
Chief Financial Officer, Networth
Measure Admission-to-Completion Ratio
One of the most critical KPIs I track at Ridgeline Recovery is our admission-to-completion ratio—how many clients who begin treatment stay through to program completion. In addiction recovery, that number tells you far more than just client volume—it reflects clinical effectiveness, staff engagement, and whether the environment we’ve created is one people trust enough to stay in.
When that ratio drops, it’s a red flag. It means something needs fixing—whether it’s our intake process, support structure, or how we’re setting expectations. When it rises, it usually correlates with stronger outcomes, better morale among staff, and ultimately, word-of-mouth referrals that bring in new clients.
I review this metric weekly alongside our leadership team. It guides resource allocation, staffing, and even facility adjustments. For example, when we noticed a dip tied to weekend discharges, we added peer support staff during off-hours—and saw the ratio improve.
The KPI keeps us honest. It’s not about filling beds—it’s about finishing the work.
Andy Danec
Owner, Ridgeline Recovery LLC
Calculate Customer Lifetime Value
One key KPI I closely monitor is Customer Lifetime Value (CLTV). This metric helps me understand not only how much revenue a customer generates during a single transaction but also the long-term value they provide to the business over time. It reveals which segments are most profitable and helps guide strategic decisions around customer retention, acquisition cost thresholds, and even product development. If I notice a drop in CLTV, it signals potential issues with customer experience or product satisfaction, prompting a more in-depth investigation. On the flip side, a rising CLTV often justifies investing more in loyalty programs or personalized marketing. It serves as a powerful compass for both growth and sustainability.
Naima Ch
Marketing Head and SEO Specialist, Morse Code Translator
Evaluate Gross Margin per Placement
One of the most important KPIs I track is Gross Margin per Placement. Unlike top-line revenue, this metric accounts for the time and effort invested in each search, offering a clearer picture of true profitability. By analyzing this data, I can identify which role types and verticals consistently yield the strongest margins. This insight directly informs where we focus our marketing and business development efforts.
It also helps us validate whether our pricing model is aligned with the actual value delivered. If margins begin to shrink in certain areas, it may be time to revisit our fee structure or adjust how we scope those engagements.
Gross Margin per Placement is also a valuable tool for evaluating recruiter performance. Not all placements contribute equally to the bottom line, so measuring profitability per fill allows for more nuanced assessments. This supports fairer commission decisions, smarter promotions, and a culture that rewards high-impact work rather than just high volume.
David Case
President, Advastar
Gauge Employee Engagement Levels
Employee engagement is a key KPI for us, and we capture this via regular surveys, feedback loops, and retention indicators. We have found that a higher level of engagement directly corresponds to higher productivity, better customer service, and less turnover. If we become aware of disengagement, we will take steps immediately to address it. This may include feedback, training, or improvements to the workplace. We utilize this KPI data so that we can improve our workplace culture, ensure that our employees feel greater support, and keep them motivated and aligned with the company’s focus.
This KPI has helped us divert energy from a negative to a positive direction that helps create a more relevant and healthier work culture. It has also allowed our team to feel empowered to lead the business.
C. Lee Smith
Founder and CEO, SalesFuel
Monitor Customer Churn Rate
One of our key performance indicators (KPIs) is the customer churn rate. It informs us about the number of clients who cancel their service within a specified time frame. If churn goes up, it’s a clear signal that something in our service, communication, or pricing isn’t working. It’s not just a number—it’s an early warning.
When we saw churn rise in a specific service area, we examined the feedback and found that our follow-up times were slipping. We adjusted scheduling and added reminder systems. That simple metric helped us identify and resolve issues before they escalated into bigger problems. Track what you can control, and act on what you learn.
Joel Miller
President, Miller Pest & Termite
Assess Repeat Client Rate
One of the most telling KPIs I track at Estorytellers is our repeat client rate. It’s simple but powerful; it tells me if clients trust us enough to come back. If that number dips, I know something needs attention. Maybe the experience wasn’t seamless, maybe communication dropped off, or maybe we didn’t match expectations.
It helps me keep my eye on both quality and satisfaction, beyond just revenue.
I use this KPI to guide team training, improve workflows, and even tweak our service structure. If people are returning, it means we’re building relationships, not just finishing transactions. That’s the kind of business I want to grow.
Kritika Kanodia
CEO, Estorytellers
Measure Property Closing Speed
One KPI I watch closely is the average number of days it takes us to close on a property after getting it under contract. In real estate, speed matters—if that number starts to creep up, it usually signals either operational bottlenecks or a cooling market. By tracking this, I can quickly adjust our team’s focus, streamline our processes, or get more proactive with buyers and sellers to keep deals moving and maintain a healthy, responsive business.
Parker McInnis
Owner, Speedy Sale Home Buyers
Track Monthly Active Users
There’s a particular KPI that I monitor at EVhype; it’s called MAU (Monthly Active Users). This metric counts the unique number of users interacting with our platform during a month. It’s a key KPI to understand user engagement and adoption of our service.
The ability to monitor MAU helps us understand whether users find our platform engaging. When, for instance, we observe a massive decrease in MAU, that would alert us that there is a user retention, content relevance, or features problem. On the other hand, a rise in MAU means that our efforts in marketing our product or updating our product are encouraging increased utilization and engagement.
MAU guides us in decisions on product refinements, feature prioritization, and content strategies. We can also dig into why users aren’t coming back and work to solve that through improving our user experience, or launching new features should they not retain.
Rob Dillan
Founder, EVhype.com
Analyze Days on Market
One KPI I keep a close eye on is “days on market” for our listings. This number tells me right away if we’ve priced a property correctly and if our marketing is connecting with buyers. If a home sits too long, we adjust our strategy quickly. For example, when a recent listing lingered after two weeks, I increased online exposure and hosted an open house, which led to multiple offers within days.
Jeremy Schooler
Founder, Kitsap Home Pro
Monitor Lead-to-Conversion Rate
One key performance indicator (KPI) we closely monitor at Franzy is the lead-to-conversion rate. This metric provides a clear view of how effectively our platform guides users through the decision-making process.
By analyzing this rate, we can identify which aspects of our platform resonate with users and where improvements are needed. For instance, if we notice a drop in conversions at a particular stage, we delve into user feedback and behavior to refine that part of the experience.
This KPI guides our product development to better meet the needs of aspiring franchisees, helping us improve satisfaction and enable growth.
Alex Smereczniak
Co-Founder & CEO, Franzy
Calculate Average Order Value
I track the average order value (AOV) as our key performance indicator. This metric helps us understand how much customers spend on average each time they shop with us. By analyzing AOV, I can gauge the effectiveness of our upselling and cross-selling strategies, and it also provides insights into customer purchasing behavior.
An increase in AOV often indicates that our marketing efforts to promote bundled products or special offers are resonating well. Conversely, if AOV declines, it prompts us to re-evaluate our pricing strategies or product placements. This information is crucial for maximizing revenue and ensuring that we’re providing the right value to our customers while also meeting our financial objectives.
Josh Qian
COO and Co-Founder, Best Online Cabinets
Measure Net Promoter Score
One KPI that we often assess is Net Promoter Score (NPS) because it gives us direct feedback about our customers’ satisfaction and loyalty. A high NPS shows that our customers are more likely to recommend our business to others, which is vital for organic growth. However, a low score tells us where we can improve, whether it be customer service, product features, or user experience.
We essentially use NPS as a means to improve our product offerings and customer support initiatives. Because we continuously gather feedback from customers, we make complete use of the tools we have available to enhance the customer experience, enabling us to foster more loyal users.
Christopher Pappas
Founder, eLearning Industry Inc
Evaluate Cost per Qualified Lead
One key KPI we track is cost per qualified lead (CPQL). It tells us how efficiently we’re turning ad spend or SEO efforts into leads that convert. Not just form fills—leads that meet our target criteria, like service area and budget.
CPQL gives us clear insight into channel performance and ROI. If it spikes, we dig into ad targeting, landing page friction, or call handling issues. It’s more useful than total leads or CPL because it filters out noise. We use it to adjust budgets, pause low-performing campaigns, and double down on what works.
Andrew Peluso
Founder, What Kind Of Bug Is This
Track Conversion Rates
As a Digital Marketing company, the purpose of our services is to bring more customers to our clients through methods like SEO, SEM, Social Marketing & Content Writing, and to measure our KPIs, we utilize conversion tracking as our primary performance indicator.
To do so, we use tracker software like SEMrush and Google Search Console to track the amount of online traffic going to our client’s websites. As for conversions, we use Google Tag Manager and Google Analytics to check the different pages and buttons visiting customers click on.
Through the gathered information, we can decide which keywords to prioritize in order to bring the most traffic and conversions to our clients to maintain the partnership.
Wan Ting Tan
Owner of Springboard, SpringBoard
Count Signed Purchase Contracts
One key KPI I track is the number of signed purchase contracts each month—it’s a real snapshot of how well our marketing and acquisitions are performing. If I see contracts dipping, I’ll double down on outreach like SMS campaigns or adjust our offer strategy to stay competitive. It’s a simple metric, but it tells me quickly if we’re on track for growth or if we need to make changes to keep the pipeline full.
Casey Ryan
Founder, We Buy Any Vegas House
