Title: Identify key performance indicators (KPIs).
Course: Small Business Marketing (12161) > Section: Selling and Promoting Products and Services

Identification should include a definition of KPI and how KPIs are used to measure the success of promotional efforts. KPIs may include, but are not limited to,

- net profit
- COGS
- ROI
- gross profit margin
- sales per square foot
- sales by product category
- conversion rate
- sales cycle length
- sell-through rate
- average customer spend
- percentage of returning customers
- frequency of store visits.

Identification should include the understanding that KPIs are specific metrics that are tied to strategic goals, while metrics are general data points used to measure various aspects of performance.

Process/Skill Questions:

- How would you explain the difference between KPIs and metrics?
- How would you explain the importance of regularly reviewing and updating KPIs?
- How do KPIs measure the success of promotional efforts?
- Why is conversion rate important for a business to use to determine the success of a promotional event?
- How can maximizing sales contribute to the operation of a retail business?