10 KPIs Every Business Dashboard Should Track
The ten KPIs most businesses should track are revenue growth, gross margin, net profit margin, cash runway, days sales outstanding, customer acquisition cost, customer lifetime value, customer retention rate, lead-to-customer conversion rate, and one core operational measure such as delivery time. Together they show whether the business is growing, profitable, financially safe and serving customers well. Track them weekly or monthly, always against a target and a trend.
Growth and profit
1. Revenue growth rate
Formula: (This period's revenue − last period's revenue) ÷ last period's revenue × 100 Why: shows whether the business is growing. Compare the same month year-on-year if you're seasonal.
2. Gross margin
Formula: (Revenue − cost of goods or services sold) ÷ revenue × 100 Why: shows how much each sale contributes before overheads. Track it by product or service to find your most profitable lines.
3. Net profit margin
Formula: Net profit ÷ revenue × 100 Why: the bottom line. Growing revenue with shrinking net margin is a warning sign.
Cash
4. Cash runway
Formula: Cash available ÷ average monthly net cash outflow Why: how many months the business can run if nothing changes. Essential for startups and anyone growing fast.
5. Days sales outstanding (DSO)
Formula: (Accounts receivable ÷ total credit sales) × number of days in the period Why: how long customers take to pay you. Rising DSO quietly drains cash.
Customers
6. Customer acquisition cost (CAC)
Formula: Total sales and marketing spend ÷ number of new customers Why: what it costs to win a customer. Track it by channel.
7. Customer lifetime value (CLV)
Formula (simple): Average order value × purchases per year × average customer lifespan in years × gross margin Why: what a customer is worth. A healthy business has CLV well above CAC. A CLV:CAC ratio of about 3:1 is a common benchmark.
8. Customer retention rate
Formula: ((Customers at end of period − new customers) ÷ customers at start of period) × 100 Why: keeping customers is usually cheaper than finding new ones.
9. Lead-to-customer conversion rate
Formula: New customers ÷ new leads × 100 Why: shows whether marketing brings the right people and whether sales converts them.
Operations
10. One core operational KPI
Choose the measure that defines service quality in your business: - Delivery or turnaround time - Order accuracy - First-response time for support - Utilisation rate (for service businesses) - Stock turnover (for product businesses)
Making KPIs useful
| Practice | Why |
|---|---|
| Show a target next to every KPI | A number without a target can't tell you whether you're on track |
| Show the trend (last 6–12 periods) | Direction matters more than a single figure |
| Assign an owner | Someone must act when it moves |
| Automate the updates | Manual dashboards go stale |
| Keep it to one page | Focus beats completeness |
Frequently asked questions
How many KPIs should a business track?
Most leadership teams should focus on 5 to 10 KPIs. Departments can track more detailed metrics that feed into them.
What is the difference between a KPI and a metric?
A metric is any measurement. A KPI (key performance indicator) is a metric that's directly tied to a goal and important enough to review regularly.
How often should KPIs be reviewed?
Cash and sales KPIs weekly, profitability and customer KPIs monthly, and the overall set quarterly to check they still reflect your goals.
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