Business Intelligence and KPIs Flashcards

What does KPI stand for?

Answer: Key Performance Indicator

KPI stands for Key Performance Indicator, a measurable value that shows how effectively an organization is achieving its objectives.

What is a dashboard in Business Intelligence?

Answer: A visual display of key metrics and KPIs for monitoring performance

A BI dashboard consolidates key metrics into a single visual interface, allowing stakeholders to monitor performance at a glance.

What is churn rate?

Answer: The percentage of customers who stop using a product or service in a period

Churn rate measures the proportion of customers who discontinue a service within a given time frame.

What does Customer Lifetime Value (CLV) measure?

Answer: The total revenue a business expects from a customer over their relationship

CLV estimates the total net revenue a customer will generate throughout their relationship with a business.

What is the purpose of a funnel analysis in business intelligence?

Answer: Tracking user progression through a series of steps toward a goal

Funnel analysis shows how users move through sequential steps (e.g., visit → sign up → purchase) and where they drop off.

What is a leading indicator?

Answer: A forward-looking metric that predicts future outcomes

Leading indicators are predictive metrics that signal future performance, allowing proactive action before outcomes occur.