KPI (Key performance indicators)

Key performance indicators (KPIs) are a set of critical measures of the performance of a business. The term is most commonly disclosed by mobile telecoms companies who regularly (in the UK, usually quarterly) release KPI numbers.

The KPIs used of the UK mobile operators include measures of both customer base and financial performance. The numbers relating to customer base are usually:

  1. number of active customers (excluding pre-pay connections that have been unused for some time)
  2. number of new customers
  3. churn
  4. SAC
  5. ARPU
  6. total revenues.

Breakdowns of some numbers (usually revenues and ARPU) by voice and data are given in KPI announcements, as are breakdowns by types of customer (contract and pre-pay) and by country or region.

KPIs are extremely useful and often disclose numbers that have more impact on the value of a company than the final results do.