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Understanding KPIs for Software Development

Successful software development is the work of quality developers and teams working together, for the software to be considered a success all three P (People, Process, and Product ) need to work together.

How can the software be successful if we do not know any data related to the software Defining, Collecting, and analyzing metrics is an important part of software development, and keeping track of the project goal and business objective aligning with each other is the most critical part. Continuous monitoring of multiple metrics is a part of software development and they are the KPIs for software development.

KPIs for software development help create measuring sticks that asses the team, and product along with their productivity, and efficiency. Let’s dive into Software development and KPIs

What is Software Development?

Software development is the process of designing, coding, testing, and maintaining applications, frameworks, or other software components. It involves a series of steps that include requirements gathering, system design, implementation, testing, deployment, and maintenance. The goal of software development is to create software that meets the needs of users and stakeholders while ensuring high quality and functionality.

What is KRA and KPI in the IT Industry?

KRA (Key Result Areas) are the broad goals areas. Broad goals define areas of responsibility and expected outcomes.

KPIs (Key Performance Indicators) are specific, measurable metrics to track performance against KRAs.

General Software Development KPIs

Software development is an important aspect of today’s world and keeping track of progress and ensuring that the project goals and business objectives align is critical. Key Performance Indicators i.e. KPIs for Software Development are the metrics that are calculated to assess a software development team and software performance.

Software development KPIs are metrics used to evaluate the performance of development teams and processes. These indicators provide insights into productivity, quality, and efficiency, enabling teams to make informed decisions and improvements. Some general KPIs include:

  • Code Quality: Measures the cleanliness and maintainability of the codebase.
  • Velocity: Tracks the amount of work completed in a given iteration or sprint.
  • Defect Density: Indicates the number of defects per unit of code.
  • Cycle Time: Measures the time taken to complete a development cycle from start to finish.
  • Customer Satisfaction: Gauges how well the software meets user expectations.

Read about how KPIs are important for Minimum Viable Products in our Article – Building Minimum Viable Product 5 Tips

What are the 5 Key KPIs?

  1. Lead Time: The total time taken from the initiation of a feature to its deployment.
  2. Cycle Time: The duration required to complete one development cycle.
  3. Deployment Frequency: How often new releases are deployed to production.
  4. Change Failure Rate: The percentage of changes that result in a failure in production.
  5. Mean Time to Recovery (MTTR): The average time it takes to recover from a failure in production.

What is the KPI in App Development?

In app development, KPIs are specific metrics that measure the performance, user engagement, and overall success of a mobile or web application. These KPIs help developers understand user behavior, identify issues, and improve the app’s functionality and user experience.

Beesoul LLC Software Development Process

Beesoul LLC follows a structured software development process emphasizing quality, efficiency, and customer satisfaction. Their process includes:

  1. Planning
  2. Design
  3. Development
  4. Deployment
  5. Support
Beesoul LLC software development process

Beesoul LLC KPIs for Software Development

We track various KPIs to ensure our development process is effective and aligned with business goals. Key KPIs include:

Our KPIs for Websites

  1. Bounce Rate: Percentage of visitors leaving the site after viewing only one page.
  2. Average Session Duration: Average time a user spends on the site.
  3. Conversion Rate: Percentage of visitors completing desired actions (e.g., sign-ups, purchases).
  4. Page Load Time: Time taken for web pages to load.
  5. Organic Traffic: Number of visitors from search engines.

Our KPIs for Web Applications

  1. User Retention Rate: Percentage of users returning over a set period.
  2. Daily Active Users (DAU): Number of unique users interacting daily.
  3. Feature Adoption Rate: Percentage of users using new features.
  4. Error Rate: Number of errors encountered by users.
  5. Response Time: Time taken for the web application to respond to user actions.

Our KPIs for Mobile Applications

  1. App Store Ratings: Average rating on app stores.
  2. Install Rate: Number of installs per period.
  3. Crash Rate: Frequency of app crashes.
  4. Session Length: Average duration of a user session.
  5. User Churn Rate: Percentage of users uninstalling the app over a period.

13 Top Software Development KPIs You Should Track in 2024

Tracking the KPs for software development is like managing a bee colony—each KPI is a diligent worker bee contributing to the hive’s success! Here’s why:

  1. Code Quality: Keeps the hive free from bugs, ensuring only the best honey (code) is produced.
  2. Velocity: Measures how fast our bees (developers) can pollinate (complete tasks).
  3. Cycle Time: Tracks the buzz from one flower to the next (start to finish of a task).
  4. Lead Time: Total flight time from spotting a new flower (feature request) to pollination (delivery).
  5. Deployment Frequency: How often bees are sending out new swarms (deployments).
  6. Change Failure Rate: Checks if the new bees (changes) can handle the wild without causing a buzzkill (failures).
  7. MTTR: How quickly a beekeeper (team) can calm a disrupted hive (recover from failures).
  8. Customer Satisfaction (CSAT): Ensures all flowers (users) are happy with the bees’ visits.
  9. Net Promoter Score (NPS): Probability of flowers recommending our bees to others.
  10. Defect Density: Keeps track of the thorns( bugs) per rose stem (line of code).
  11. Security Vulnerabilities: Regularly check the hive for any vulnerable spots.
  12. Test Coverage: Makes sure every comb in the hive is thoroughly checked (tested).
  13. Technical Work: Amount of fixing up the hive (rework) needed to keep it sturdy.

Just like a healthy bee colony, maintaining these KPIs helps ensure that your software development is buzzing along productively and efficiently!

Setting up KPIs for Software development

Your KPIs need to be specific about certain tasks. Your KPIs must have a quantity that can be measured. How can a KPI not be measured through numbers? Number plays an important role in measuring and managing the KPI. Your key performance indicators must be directly related to your business goals to ensure that your project is not being

Software KPI Examples

Bug Squash Rate:

  • “How quickly we can turn bugs into ‘features’ no one notices. (Measured in bugs fixed per sprint).”

Code Coverage:

  • “The percentage of our code that’s not afraid of the dark because it’s covered by tests. (Measured in % of code covered by automated tests).”

Deployment Frequency:

  • “How often we deploy our hopes and dreams (or nightmares) to production. (Measured in deployments per week).”

Lead Time for Changes:

  • “The time it takes from a developer’s ‘Eureka!’ moment to users actually seeing the change. (Measured in hours/days).”

MTTR (Mean Time to Recovery):

  • “How fast we can put out production fires without getting burned. (Measured in hours).”

User Satisfaction Score:

  • “The happiness index of our users after they use our app (and hopefully don’t curse our names). (Measured through user surveys).”

System Uptime:

  • “How often are our servers running and not napping? (Measured in % uptime per month).”

Feature Usage:

  • “How many users actually use the fancy new button we just spent weeks on? (Measured in clicks or interactions per feature).”

Page Load Time:

  • “The time it takes for our app to say ‘hello’ to the user. (Measured in seconds).”

Customer Support Tickets:

  • “The number of ‘Houston, we have a problem’ messages we receive. (Measured in tickets per week/month).”

Release Burndown Rate:

  • “How quickly we can turn our backlog into ‘done and dusted.’ (Measured in story points or tasks completed per sprint).”


  • “How much work we can get through without losing our minds. (Measured in tasks completed per sprint).”

How to Measure Software KPIs

  1. Define Metrics: Clearly define the KPIs you want to measure.
  2. Collect Data: Use appropriate tools to gather data.
  3. Analyze Data: Regularly review and analyze the collected data.
  4. Adjust Strategies: Make necessary adjustments to improve performance based on insights.


Measuring software KPIs involves collecting data through various tools and processes. Common methods include:

  • Issue Tracking Systems: Monitor defects and change failures.
  • Version Control Systems: Track code changes and deployment frequency.
  • Customer Feedback Tools: Gauge customer satisfaction.
  • Automated Testing Tools: Assess code quality and defect density.

Common Software KPIs to Avoid

  • Vanity Metrics: Metrics that look good but don’t provide actionable insights.
  • Unaligned Metrics: KPIs that are not aligned with business goals.
  • Overly Complex Metrics: Metrics that are too complicated to measure or understand.

Why Should You Track Software KPIs?

According to the 2023 Survey, 21% of global businesses reported having KPIs aligned to business goals. Americas (25%) has the most among all the other continents.

Software KPIS Wordlwide Understanding KPIs for Software Development
Presence of personalization KPIs in companies worldwide 2023

Tracking KPIs for Software Development provides numerous benefits like Improving decision-making with data-driven insights that will eventually increase productivity. KPIs can be used to find bottlenecks and areas of improvement that lead to continuous monitoring of leads to ensure that the final product is meeting user expectations or client expectations.

What Types of KPIs Should You Focus On?

You should Focus on KPIs that cover the critical aspects of software development that are related to your

  • Efficiency: Metrics like lead time and cycle time.
  • Quality: Code quality and defect density.
  • Customer Satisfaction: Feedback and satisfaction scores.
  • Productivity: Deployment frequency and employee productivity.

By focusing on the right KPIs, software development teams can ensure they are on track to meet their goals, deliver high-quality products, and maintain customer satisfaction. Regularly reviewing and adjusting these metrics is crucial for continuous improvement and success in the dynamic field of software development.

FAQs About Software Development KPIs

Key KPIs include lead time, cycle time, deployment frequency, change failure rate, and MTTR.

A software development KPI is a measurable value that indicates how effectively a software development team is achieving key business objectives.

Consider tools like Jira, GitLab, and Jenkins for tracking development KPIs.

  • Enhanced Transparency: Clear visibility into development processes.
  • Better Resource Management: Efficient allocation of resources based on performance insights.
  • Increased Accountability: Teams are more accountable for their performance.

  • Mean Time Between Failures (MTBF): Measures the average time between system failures.
  • Mean Time to Recovery (MTTR): Measures the average time to recover from a failure.

Comprehensive guide to KPIs examples 6 Understanding KPIs for Software Development

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