What Is a KPI Report? Guide to Best Practices and Examples
Too often, KPI reports are cluttered, outdated, or disconnected from business goals—turning potential insights into background noise. Without a clear, well-structured KPI report, teams struggle to track progress, spot inefficiencies, and pivot strategies in real time.
A great KPI report cuts through the chaos, presenting the right data in an easy-to-digest format. Whether you’re monitoring revenue growth, customer engagement, or operational efficiency, a well-designed report transforms raw numbers into actionable insights.
In this article, we’ll break down what a KPI report is, why it’s essential, and how to create one that actually moves the needle for your business.
What is a KPI report?
A KPI report is a tool for measuring progress, evaluating success, and making strategic decisions. This business intelligence (BI) document presents key performance indicators (KPIs) in a clear and structured format so everyone on your team can easily interpret information and assess if you’re meeting your business objectives.
KPI reports help organizations track their progress toward predefined goals by analyzing relevant metrics and visualizing data to understand performance, see where they can improve, and quickly make decisions. Typically, KPI reports are generated on a regular basis (daily, weekly, monthly, or quarterly) to ensure continuous performance monitoring and improvement.
KPI reports often include:
- A summary of key metrics
- Data visualizations, such as charts and graphs
- Comparative analysis, like period-over-period performance
- Actionable insights and recommendations
Importance of KPI reports in business
KPI reports are essential for assessing performance and turning data into actionable insights and strategy, whether you’re looking to improve internal operations like your marketing campaigns or organization-wide financial performance. There are a few ways you can use KPI reports.
Measure performance
KPI reports allow you to measure and evaluate the performance of an individual or an entire team, department, or company against specific objectives or goals. For example, if you wanted to see if your sales team is meeting their monthly goals, you would track and assess sales-based metrics like conversion rates, average deal size, or total revenue.
Make data-driven decisions
With real-time and historical data at your fingertips, decision-makers can identify trends, pinpoint inefficiencies, and implement strategies to optimize performance. KPI reports take the guesswork out of important business decisions.
Increase accountability and transparency
KPI reports provide clear and objective performance data, fostering accountability among teams and departments. Employees and stakeholders can see how their contributions impact overall business success.
Improve efficiency and productivity
By identifying bottlenecks and areas that need improvement, KPI reports help organizations streamline operations, allocate resources more effectively, and enhance productivity.
Forecast and find opportunities
Tracking your KPIs over time and analyzing trends can help you anticipate changes in demand or discover new opportunities for growth, helping you with long-term strategic planning.
How KPI reports differ from other performance reports
While KPI reports are a subset of performance reports, they have distinct characteristics that set them apart from other types of reporting documents.
Feature | KPI reports | Other performance reports |
Focus | Tied to strategic goals and focus on the most relevant metrics | General business metrics and operational data |
Structure | Standardized format with key metrics, visualizations, and insights | Can vary widely based on purpose and audience |
Timeframe | Regularly scheduled (daily, weekly, monthly, etc.) to track and analyze performance | Created periodically (quarterly, annually) or as-needed |
Purpose | To track progress toward specific goals and inform decision-making | To provide an overview of business functions, financials, or other areas |
Data Visualization | Heavy use of charts, graphs, and trend analysis for easier interpretation of data | May include raw data, textual analysis, and detailed reports |
KPI report vs KPI dashboard
While KPI reports and KPI dashboards share similarities, as they both track key performance indicators, the tools are distinct in their purpose and usage.
KPI report
A KPI report is a static document that provides a detailed analysis of KPI trends over a specified period. It is typically generated at scheduled intervals, such as monthly or quarterly, and offers in-depth insights, comparative analysis, and actionable recommendations. KPI reports are ideal for strategic decision-making, executive reviews, and long-term planning. You would use a KPI report when you needed a comprehensive, historical analysis of business performance to inform strategic decisions, investor reports, or high-level business reviews.
KPI dashboard
In contrast, a KPI dashboard is a real-time, interactive visualization tool that displays key metrics dynamically. Dashboards allow you to monitor performance continuously, drill down on specific data points, and get immediate updates on changing business conditions. They are most effective for operational decision-making, quick assessments, and performance monitoring by teams and departments. KPI dashboards are great for when you need real-time data visibility, instant insights, or the ability to interact with and explore data.
Key components of a KPI report
A well-structured KPI report should contain essential elements that make it easy to interpret and take action, including clear objectives, relevant KPIs, data visualizations, and benchmarks. While the exact elements may vary depending on your industry, business objectives, or the report’s audience, you’ll need to include:
- Clear objectives: Define the purpose of what you want to measure, the desired outcome or target you’re trying to achieve, the timeframe you’re evaluating, and the audience who will be viewing the report.
- Relevant KPIs: Select measurable KPIs that are relevant to your objectives and can be easily tracked.
- Targets or benchmarks: Include your specific targets or industry benchmarks so you can fully assess and compare the report’s findings.
- Data visualizations: Use tables, charts, or graphs to present data in a clear, easy-to-understand way that highlights trends or insights.
- Context: Provide relevant background information or additional data that may impact your findings or insights.
- Analysis and recommendations: Detail the report’s findings and suggest actionable next steps.
Data visualization techniques
Charts, graphs, and other visualizations allow everyone to explore and understand your KPI report, regardless of their technical background. The data visualization you’ll want to use depends on the KPIs and metrics you’re evaluating and what insights you’re interested in learning.
Here are some options you might consider for presenting data:
- Line graphs: Ideal for tracking performance trends over time and identifying patterns.
- Bar charts: Useful for comparing different categories, teams, or departments across specific time frames.
- Pie charts: Best for showing proportions and distributions, such as revenue by product or market share.
- Heat maps: Effective for identifying patterns in data across different variables or spotting anomalies in data.
- Tables and scorecards: Provide structured numerical representations of KPIs, making comparing actual vs target metrics simpler.
- Scatter plots: Ideal for displaying relationships between two different performance variables, as they show how changes in one affect the other.
- Gauges and progress bars: Useful for indicating the percentage completion of goals or tracking performance thresholds.
Setting benchmarks and targets
Benchmarks and targets provide context for your KPIs and act as a roadmap to help you more effectively measure and improve your performance over time. To set successful benchmarks and targets, you first need to assess your current performance. This step establishes your baseline so you can set realistic targets and measure progress. Consider using SMART goals—specific, measurable, attainable, relevant, and time-bound—to ensure your KPI targets are clear and actionable.
Additionally, you can research industry standards, analyze the performance of your competitors, or involve key stakeholders to develop relevant and achievable benchmarks for both short- and long-term goals. Establishing targets or benchmarks is key to knowing if you’re on the right track or need to make further adjustments to meet your objectives.
Types of KPI reports
KPI report formats differ to serve varying business purposes. Understanding the types of KPI reports can help you choose the right one for tracking and evaluating your performance.
Monthly, quarterly, and annual reports
First, you’ll need to consider the timeframe you want to assess. For instance, monthly reports focus on short-term performance trends, identifying immediate challenges and opportunities. Managers and teams commonly use monthly reports for operational adjustments and tactical planning.
Quarterly KPI reports cover a broader timeframe, offering insights into trends that develop over multiple months. They are ideal for executive reviews, evaluating department-wide performance, and making mid-term strategic adjustments.
If you’re looking for a more comprehensive analysis of your performance over the year or want to evaluate long-term business goals, consider annual reports. People use annual KPI reports for high-level strategic planning, end-of-year performance evaluations, and investor relations.
Strategic vs operational reports
You can create KPI reports for strategic or operational purposes. Operational reports focus on day-to-day activities and performance metrics that impact business operations, such as sales performance reports, customer support metrics, or production efficiency reports. Operational reports help managers and teams monitor efficiency, productivity, and real-time problem-solving.
On the other hand, strategic KPI reports analyze high-level trends, competitive positioning, and company-wide performance against objectives. These reports are aimed at executives and decision-makers, tracking long-term goals and business growth. Strategic reports share insights about your current business strategy and where things are headed through metrics like market share or percentage of sales from a specific region or product.
Examples and templates of KPI reports
To simplify the process of creating KPI reports, you can use a pre-built template that aligns with specific industry standards or business objectives.
- Marketing KPI report: Track top marketing KPIs like campaign performance, lead conversion rates, social media engagement, and return on marketing investment.
- Sales KPI report: Monitor sales growth, pipeline performance, customer acquisition costs, and revenue per salesperson.
- Financial KPI report: Review profit margins, cash flow trends, expense management, and ROI.
- Customer service KPI report: Highlight customer satisfaction scores, response time, resolution rates, and churn rates.
- Healthcare KPI report: Track patient wait times, hospital readmission rates, and treatment success rates.
- Retail KPI report: Analyze inventory turnover, average transaction value, and sales per square foot.
Real-world examples
For inspiration, here are a few KPI reporting examples from various industries.
E-commerce business
An online retail company uses a sales KPI report to track revenue growth, abandoned cart rates, and customer retention trends.
Manufacturing industry
A factory implements an operational KPI report to monitor production efficiency, defect rates, and machine downtime.
IT and technology sector
A software company creates an IT KPI report to track system uptime, cybersecurity incidents, and ticket resolution times.
Customize KPI report templates to fit your business needs
While templates are a good starting point, you’ll want to tailor your KPI report so it aligns with your specific needs and provides effective insights.
- Identify core business goals: Ensure the selected KPIs align with strategic objectives.
- Use relevant data sources: Pull accurate data from CRM systems, financial software, and operational tools.
- Adjust metrics based on business size and industry: Customize benchmarks to reflect industry norms and company-specific priorities.
- Incorporate visual elements: Enhance readability with charts, graphs, and trend lines.
Set clear targets and actionable insights: Define the next steps for performance improvement based on KPI trends.
How to create a KPI report
Creating a KPI report involves careful planning, data collection, and analysis to ensure it delivers meaningful insights. Here’s a step-by-step guide to creating an effective KPI report:
1. Identify your audience
Before creating your report, it’s important to know your report’s audience. Operational teams, department managers, and executives have varying priorities, and understanding your audience ensures you choose a report that’s structured to meet their needs.
2. Define objectives and goals
Clearly outline the purpose of the KPI report by identifying the business goals it supports. Ask key questions such as:
- What are the main strategic or operational objectives?
- How do these objectives align with broader company goals?
- What insights are stakeholders looking for?
Once you set your objectives, you’ll define KPIs that directly measure progress toward those goals.
3. Select relevant KPIs
Not all metrics are key performance indicators. Choose performance indicators that accurately reflect success and progress and:
- Align with business priorities.
- Are measurable and quantifiable.
- Offer actionable insights.
- Can be tracked consistently over time.
For example, if the goal is to improve customer satisfaction, relevant KPIs could include Net Promoter Score (NPS), customer retention rates, and support resolution times.
4. Gather data from reliable sources
Ensure data accuracy by sourcing information from trusted systems such as:
- CRM software: For customer interactions, sales figures, and marketing metrics
- Financial platforms: For revenue, expenses, and profitability metrics
- Operational databases: For production, logistics, and efficiency-related KPIs
- Surveys and feedback tools: For customer and employee satisfaction insights
Use automated data extraction where possible to minimize errors and maintain consistency.
5. Organize and structure the report
A well-structured KPI report makes it easier for stakeholders to find and understand key insights. Establish a clear format that includes a title and timeframe stating what the report covers and sections for KPIs, visualizations, and analysis. Provide actionable insights and next-step recommendations based on your findings.
6. Use data visualization techniques
Graphs, charts, and scorecards make complex data more accessible. Incorporate data visualizations to make the KPIs easier to interpret, compare benchmarks, and track over time.
7. Analyze trends and draw insights
Compare data across time periods and evaluate trends to make informed decisions. Once data is visualized, analyze patterns and correlations to understand:
- How KPIs are changing over time.
- What factors are influencing performance.
- Any anomalies or outliers requiring further investigation.
For example, a sudden drop in marketing campaign conversion rates may indicate market shifts or ad targeting effectiveness that needs immediate attention.
8. Provide actionable recommendations
Data alone is not enough—turn insights into action by offering:
- Specific strategies to improve underperforming KPIs.
- Adjustments in processes or resource allocation.
- Benchmarking comparisons to industry standards or competitors.
- Predictive insights to prepare for future challenges.
9. Review and share the report
Before distributing the KPI report, review it to ensure the data is accurate and up to date; the visualizations are easy to interpret; and the key takeaways are clear. Then, distribute the report to stakeholders and make necessary adjustments based on feedback.
Common tools and software for reporting KPIs
Various tools and software solutions can help organizations effectively create and manage KPI reports. These tools generally fall into several categories:
Spreadsheets and data management tools
These are used for KPI reporting due to their flexibility in data organization, calculations, and visualization. They offer features such as pivot tables, formulas, and built-in charting but aren’t as user-friendly as other options.
Business intelligence (BI) platforms
These tools offer advanced data visualization, automated reporting, and integration with multiple data sources. They are ideal for organizations that need real-time analytics and in-depth data exploration.
Data visualization software
These applications focus on transforming raw data into interactive and easily interpretable charts, graphs, and dashboards, making insights more accessible to employees and stakeholders.
Cloud-based reporting tools
These platforms allow you to generate and share KPI reports online, offering collaboration features, automated updates, and live data connections.
Customizable reporting solutions
Many organizations build or use industry-specific software tailored to their unique reporting needs, integrating KPIs with enterprise systems for seamless tracking. Choosing the right tool depends on the complexity of the KPI report, the level of automation required, and your overall data strategy.
Gathering and analyzing data
How you collect and evaluate your data matters, too. For effective KPI reporting, you’ll want to:
- Ensure data accuracy: Use verified sources and clean data to remove inconsistencies or errors.
- Standardize data collection methods: Maintain consistency in data collection across different departments and reporting periods.
- Use real-time data when possible: Take advantage of live or streaming data to track performance more accurately.
- Benchmark against industry standards: Compare KPIs with competitors and industry benchmarks to gauge success.
Regularly review and update metrics: Reassess KPIs to ensure they remain relevant to evolving business goals.
KPI reporting best practices
To maximize the effectiveness of a KPI report, follow these best practices:
- Align KPIs with business goals: Ensure your chosen KPIs directly support organizational objectives.
- Use reliable and real-time data: Accurate, up-to-date data improves decision-making and prevents misleading conclusions.
- Keep reports clear and concise: Avoid clutter by focusing on essential KPIs and using intuitive visualizations.
- Ensure consistency in reporting: Maintain uniform data collection methods and reporting formats to allow easy comparisons over time.
- Make reports actionable: Include insights and recommendations that help stakeholders take meaningful action based on the data.
- Regularly review and refine KPIs: Business needs evolve, so periodically assess and adjust KPIs to maintain relevance.
Implementing effective KPI reporting practices can make the difference between a reactive business strategy and a proactive, data-driven approach to success. Whether you are a business leader, analyst, or department manager, KPI reports can provide the insights needed to propel your organization forward.
With Domo’s powerful business intelligence platform, you can automate KPI reporting, visualize real-time data, and make informed decisions to improve your performance and drive growth. Start transforming your data into actionable insights with Domo today.