Key Performance Indicators (KPIs) and Key Result Areas (KRAs) are the most common terms in the BPO industry. They’re used to measure and monitor the performance of employees, departments, or even entire companies. You may have heard of KPIs but not KRAs, or vice versa. In this article, we’ll provide an overview of both terms and explain their differences so that you can better understand which one is right for your business needs!


What is the difference between KPI and KRA in BPO?

KPI is a metric that measures the performance of an organization, department, or business unit. It can be used to track progress toward meeting goals and objectives.

KRA is also a metric that measures performance but focuses on customer satisfaction rather than internal metrics, as KPIs do. A KRA looks at how well you are helping your customers achieve their goals, so if you want to know what makes your customers happy with your service, this is the metric for you!

What are Key Performance Indicators?

Key Performance Indicators (KPIs) are metrics that measure the performance of a business. They’re used to track progress toward goals, monitor the success of a business strategy, and improve performance by identifying areas where improvements are needed.

KPIs can be quantitative or qualitative, depending on how they’re calculated and what information they provide. A good KPI should be clear and understandable, meaningful for everyone involved in its calculation, reliable enough so that it doesn’t change from one day to another (or even hour), relevant for measuring your objectives or goals, and easily actionable if needed.

What are Key Result Areas (KRAs)?

Key Result Areas (KRAs) are a company’s desired results. They are the “Why” behind a business objective or KPI. For example, if your company’s goal is to increase profitability by 10%, then increasing sales would be one way of achieving this goal.

In contrast with KPIs, which focus on measuring performance against specific targets or goals, KRAs help companies set direction by defining success and how they will measure it. In other words, KRAs help you get from point A (where you currently are) to point B (where you want your organization’s performance level).

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What is the difference between KPIs and KRAs?

KPIs and KRAs measure the success of an organization, business process, or customer. KPIs are broader, and KRAs are more specific.

For example:

  • A KPI might be “sales revenue,” whereas a KRA would be “average order value.”
  • Customers might set up KPIs for their sales team, such as “new customers acquired per month” or “the amount spent by existing customers.” This can help them to understand how well their sales team is performing against these targets so they can make changes if necessary.


We hope you  better understand the differences between KPIs and KRAs. Understanding what each measurement means and how it can be used in your business is important. The bottom line is that while they measure performance, they do so in different ways with different goals in mind.