[What is The Difference between Metrics and Measures. Examples. Importance. Relationship with KPI]

Hi there, today I am going to clarify the differences between measures and metrics. At the very beginning, you will understand the differences between them. You will understand why neglecting only one of them can be destructive for your business.

Measures vs Metrics: Definition;

Measures are unsorted raw numbers. Metrics are meaningful measures and KPIs are those metrics which express the performance of a company or project either ongoing or completed. 

Measures vs Metrics: Examples;

Smith is an entrepreneur. At the end of the month, he wanted to find out the total revenue of his enterprise. The total revenue is the metric. It has meaning. He had the list of sales. Sales are the measures.

Measures vs Metrics: Importance;

We take a good lock on measures to find out the error of the metrics. We see the performance of the company by looking at the metrics. Now imagine you are a skeptical person and think the company is showing wrong data intentionally. Maybe they want to sell their shares by showing excessive sales. So you need to look at their inventories and compare it with the sales amount and cash flow statement.  

Measures Metrics
Measures are raw numbers. Metrics are meaningful measures.
All measures are not important for the company. All metrics are important for companies.
Measures are just numbers. Metrics are often derived from measures by mathematical calculation.

Measures vs Metrics: Limitation;

Both of them have interesting limitations. Metrics can be called measures but measures can’t be called metrics always. Revenue is a metric and also a measure. But Individual sales are measures but not metrics. Metrics don’t guarantee accuracy of what they are showing. We need measures to assess accuracy of the metrics. If we don’t maintain the ledger of sales, we will never be able to tell that the revenue we are calculating is accurate. Measures don’t tell why you are doing good or bad. Measures tell you are doing good or bad. Measures and Metrics don’t interpret the data they are showing. You need to use your head for the interpretation.

Measure vs Metrics: Relationship with KPI;

Measures have no relationship with KPI. Metrics have a direct relationship with KPI. The indicators are metrics. KPI doesn’t consider all metrics. It considers only those metrics which are showing the performance of the company.  


Data is the main player in the current business world. The more data you have the better you do. You also need to know which data you need. You need to set objectives. Only then you will be able to understand your required KPIs. You will equip your KPIs with the right kind of metrics, and those metrics will be executed by measures.