Stage 1 · Lesson 3 of 6
Metrics, KPIs and precise definitions
A is a number with a precise definition. For example: "orders placed and paid, excluding refunds and test accounts, counted in the business time zone". A KPI (key performance indicator) is one of the few metrics a team has agreed to judge itself by.
Analysts spend a surprising amount of time on definitions. If two reports define "active user" differently, they will never agree, and people stop trusting both. So write each definition down before you build anything.
Say what counts, what is left out, the time window and the table the data comes from. This habit carries straight into filters and the measures (saved calculations) you build in later.
Common trapleaving such as refunds, cancellations, duplicates and time zones to chance, so the same metric changes depending on who calculates it.
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