What is the difference between a KPI and a general metric?
A metric is any quantified measure. A KPI is a metric that has been promoted: it tracks progress toward a stated objective, carries a target, and has an owner who is expected to act when it moves. The relationship is one-way — all KPIs are metrics, most metrics are not KPIs.
Tied to an objective — a KPI exists because a goal exists; if you cannot name the business objective it measures, it is a metric being displayed, not a KPI.
Has a target and time frame — "churn 5.2%" is a metric, "churn below 4% by Q4" is a KPI, because the target is what makes the number readable as good or bad.
Has an accountable owner — someone is responsible for the number moving and has levers to move it; an unowned KPI is decoration.
Deliberately few — a team tracks a handful of KPIs and many supporting metrics; dashboards with thirty KPIs have none, because attention is the scarce resource.
Supporting metrics explain KPIs — when a KPI misses, diagnostic metrics such as traffic, conversion rate and average order value tell you which lever failed.
Key terms: KPI, metric, business objective, target, accountability, diagnostic metric, north-star metric, vanity metric
Lead with the one-line hierarchy — all KPIs are metrics, few metrics are KPIs — then name the three things that promote one: objective, target, owner. The example that lands best is the same measure classified differently for two teams, because it proves you understand KPIs as contextual rather than a fixed list.
Expect the follow-up "give me a KPI and a metric from a business you know" so have a concrete pair ready, and be prepared for "what is a vanity metric?" Avoid the common mistake of calling anything on a dashboard a KPI — saying that most dashboard tiles are supporting metrics shows you understand why the distinction exists.