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Tom Palmer, the operations manager at Dragon Gym, discussed the importance of Key Performance Indicators (KPIs) in objectively determining business performance. He highlighted the three most important KPIs: close rate, cancellation rate, and lifetime value, and explained how each of these KPIs has sub-KPIs and metrics that are important to track. By tracking these KPIs properly, businesses can quickly identify and fix problems, and ensure their growth and success in the long run.