Deploy KPI trees to define a meaningful KRs

In the last two posts , I have shared the different kind of frameworks which can be used to define a KR. Exploring the causal metrics can prove to be a powerful way to define KRs successfully.

For instance, Revenue in e-commerce is defined by # of Transactions x Average value of each transaction. If there is movement in any of those metrics, we can see a corresponding change in Revenue. 

Furthermore , # of transactions can be divided into # of Users visiting the App x Conversion rate.

Average value of each transaction is defined as Total value of transaction / No. of transactions. 

Similarly we can drill down to further levels as shown in figure below :

Product Teams should ensure that they are using the KR which is closely tied to the goal they are trying to achieve. For example, you are aiming to improving the product details page & logically improved conversion rate ( clicks on “Buy Now” will be the penultimate outcome, however “Add to Carts /Wishlist” are also key indicators which helps in analyzing the performance of enhanced product details page. 

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