Why You Need Ratio KPIs

“Ratios are easier to act on. Think about driving a car. Distance traveled is informational. But speed – distance per hour – is something you can act on, because it tells you about your current state, and whether you need to go faster or slower to get to your destination on time. Ratios are inherently comparative. If you compare a daily metric to the same metric over a month, you’ll see whether you’re looking at a sudden spike or a long-term trend. In a car, speed is one metric, but speed right now over average speed this hour shows you a lot about whether you’re accelerating or slowing down.”

– Alistair Croll and Benjamin Yoskovitz, Lean Analytics