Key Metrics Every Data Analyst Must Know
Revenue metrics, customer metrics, conversion metrics, and operations metrics — every formula, an Indian business example, and the SQL to calculate it. The metrics you will encounter in every interview and every real role.
This chapter covers 12 business metrics across 4 categories — each with the plain-English definition, the exact formula, a real Indian business example, and the SQL to calculate it. You do not need to memorise all of these at once. Read through, then come back when you encounter each metric in a real dataset or interview.
Revenue & Financial Metrics
Customer Metrics
Conversion & Marketing Metrics
Operations & Supply Chain Metrics
Quick Reference — All 12 Metrics at a Glance
Frequently Asked Questions
What is a KPI in data analytics?
A KPI (Key Performance Indicator) is a quantifiable measure used to evaluate how effectively a business is achieving its objectives. In data analytics, KPIs are the specific metrics that appear on dashboards and reports — because they directly reflect business health. A good KPI is specific (measures one thing), timely (updated frequently enough to act on), actionable (if the number changes, someone can do something about it), and business-relevant (tied to a goal the organisation cares about). Examples: monthly revenue, customer churn rate, on-time delivery rate, conversion rate. Not everything is a KPI — a metric becomes a KPI when a team actively monitors it and makes decisions based on it.
What is the difference between a metric and a KPI?
A metric is any quantitative measurement — total website visits, total orders placed, average delivery time. A KPI is a metric that has been designated as critical to a specific business goal. All KPIs are metrics, but not all metrics are KPIs. For example, "number of pages viewed per session" is a metric. For a content site whose goal is engagement, it becomes a KPI. For an e-commerce site whose goal is transactions, it is just a supporting metric. The distinction matters in analytics because dashboards should highlight KPIs — the numbers stakeholders care about — not every available metric. Cluttered dashboards that show 40 metrics with no hierarchy are a common analyst mistake.
What is customer churn rate and how do you calculate it?
Customer churn rate is the percentage of customers who stop using a product or service in a given period. Formula: Churn Rate = (Customers Lost in Period / Customers at Start of Period) × 100. Example: if you had 10,000 customers at the start of July and 9,200 at the end of July (without counting new additions), churn = (800 / 10,000) × 100 = 8%. In Indian subscription businesses (OTT platforms, SaaS, telecom), churn is a primary KPI because acquiring a new customer costs 5–7x more than retaining an existing one. A churn rate above 5% monthly is typically a red flag that something is wrong with product value or customer experience.
What is Month-over-Month (MoM) growth and Year-over-Year (YoY) growth?
Month-over-Month (MoM) growth compares a metric in one month to the previous month. Formula: MoM Growth = ((This Month - Last Month) / Last Month) × 100. It shows short-term momentum but is sensitive to seasonality. Year-over-Year (YoY) growth compares the same month (or period) across two consecutive years. Formula: YoY Growth = ((This Year - Last Year) / Last Year) × 100. YoY removes seasonality — comparing August 2026 to August 2025 is more meaningful than comparing August 2026 to July 2026 for categories like electronics (where July has a different demand pattern than August). Indian financial analysis typically reports both — MoM for operational monitoring, YoY for strategic reviews.
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