RGM® Glossary · Product Management
Growth Glossary — Definition
SHT COST-PERFORMANCost Performance Index (CPI)
EV / AC; >1 is under budget. A working definition from the RGM marketing glossary.
EV / AC; >1 is under budget.
- Term
- Cost Performance Index (CPI)
- Field
- Product Management
- Category
- Growth & Lifecycle
Common mistakes
Read that twice.Most mistakes with Cost Performance Index (CPI) share a root: the term gets reported as if it were exact when it is not.
- One-size thinking. Using Cost Performance Index (CPI) flat across every segment. The right cut differs by channel and margin.
- No context. Reporting Cost Performance Index (CPI) with no baseline. A bare number cannot be judged.
- Chasing the word. Optimizing Cost Performance Index (CPI) for its own sake. Check it tracks a real outcome.
- Apples to oranges. Comparing Cost Performance Index (CPI) across firms raw. Adjust for pricing and cycle before you read it.
Quick answers
What does Cost Performance Index (CPI) mean?
EV / AC; >1 is under budget. Agree the scope of Cost Performance Index (CPI) before the planning starts.
Why does Cost Performance Index (CPI) matter for marketers?
Cost Performance Index (CPI) earns its place when it shapes a real decision. The leverage is in correct use, not in the word itself.
How is Cost Performance Index (CPI) used in practice?
Teams put Cost Performance Index (CPI) to work on a spend split, a metric, or a head-to-head call. See the Duolingo walk-through above.
What goes wrong with Cost Performance Index (CPI) most often?
Chasing Cost Performance Index (CPI) as a goal and benchmarking it raw. Both bury the real trade-off underneath.
- What does Cost Performance Index (CPI) mean?
- EV / AC; >1 is under budget. Agree the scope of Cost Performance Index (CPI) before the planning starts.
- Why does Cost Performance Index (CPI) matter for marketers?
- Cost Performance Index (CPI) earns its place when it shapes a real decision. The leverage is in correct use, not in the word itself.
- How is Cost Performance Index (CPI) used in practice?
- Teams put Cost Performance Index (CPI) to work on a spend split, a metric, or a head-to-head call. See the Duolingo walk-through above.