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Understanding KPIs – What They Really Mean
KPIs aren’t just fancy numbers—they’re the pulse of your business decisions.
In this post, I break down how I identify and track the right KPIs that truly drive impact at Swiggy.
Understanding KPIs – What They Really Mean
If you’re stepping into the world of Business Analytics, one term you’ll encounter everywhere is: KPI (Key Performance Indicator).
But here’s the truth 👉 Most people track KPIs without understanding what they actually mean or how they tie back to the business.
So today, let’s decode KPIs — beyond the buzzword.
📊 What Are KPIs Really?
KPIs are measurable values that help businesses know whether they’re moving in the right direction. But not all metrics are KPIs.
📌 Metrics tell you what’s happening.
📌 KPIs tell you whether it matters.
🔍 Examples from My Experience at Swiggy:
| 🛠 Project | 🎯 Business Goal | ✅ KPI |
|---|---|---|
| Gig worker incentives | Maximize delivery efficiency | Avg. orders per rider per hour |
| Surge pricing analysis | Balance demand & supply | Acceptance rate during surge slots |
| Late-night delivery optimization | Reduce complaints | Order-to-delivery time variance |
These KPIs aren’t random—they’re tied to business goals, outcomes, and decisions.
✅ Good KPI vs Bad KPI
| ❌ Bad KPI | ✅ Good KPI |
|---|---|
| Total number of orders | % increase in orders vs. target |
| Total logins by workers | % of workers meeting delivery quota |
| Report run time | % reports delivered before 11 AM deadline |
Good KPIs are:
✔️ Aligned with goals
✔️ Actionable
✔️ Time-bound
✔️ Easy to understand
🔑 3 Things I Keep in Mind Before Defining a KPI:
- What is the business really trying to improve?
e.g., Revenue, Retention, Quality? - Is this KPI something we can influence?
A KPI you can’t act on = pointless vanity metric. - How will this be reported or tracked?
If it’s too complex to update regularly, it won’t work long term.
💡 Real Talk:
At Swiggy, when I helped define KPIs for the Surge Pod Value project, we initially tracked too many things: distance, temperature, zone, etc.
But over time, we simplified it down to 3 solid KPIs:
- Acceptance Rate
- Earnings Per Order
- Peak Time Order Success
Once we narrowed it down, everyone—from gig ops to finance—understood what to look for.
📢 Final Thought:
KPI isn’t just a spreadsheet column.
It’s your business’s heartbeat — so choose wisely, measure smartly, and always tie it back to impact.
✅
Ever wondered how non-tech folks like me manage tools like Jira and Postman for automation?
Stick around for Day 18: “Jira, Postman & Me: A Non-Techie’s View on Automation” – I’ll break it down in simple terms!
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