What is a Marketing KPI?

A Marketing KPI (Key Performance Indicator) is a measurable value that demonstrates how effectively a company is achieving key business objectives in marketing. It helps in tracking performance over time and aligning marketing initiatives with strategic goals.

Why Are Marketing KPIs Important to Measure?

Marketing KPIs (Key Performance Indicators) are essential as they provide quantifiable metrics that help businesses evaluate the effectiveness of their marketing strategies against predefined objectives. By monitoring these indicators, companies can assess the success of their marketing efforts, identify areas for improvement, and make data-driven decisions.

This process of systematic tracking enables the optimisation of resources and budget, enhances the ability to respond quickly to market changes, and ultimately drives business growth. Additionally, KPIs facilitate clear communication within the organisation about marketing goals, fostering alignment across departments and ensuring that marketing strategies contribute effectively to the overall business objectives.

85 Essential Marketing Key Performance Indicators

Here are 85 common marketing KPIs that businesses use to track and optimise their marketing efforts, ensuring alignment with strategic goals and driving sustainable growth. For simplicity, we have categorised them:

1. Brand Awareness KPIs

Brand awareness metrics gauge how recognisable your brand is among your target audience and the wider market. They serve as indicators of your brand's visibility and the effectiveness of your marketing campaigns in reaching a broad audience.

• Impressions: This metric counts how often your advertisement or content has been displayed, regardless of whether it was clicked or not. Learn more.
• First-page keyword rankings: This indicates whether your website's content ranks on the first page of search engine results for relevant keywords, which is crucial for organic reach.
• Social Media Engagement Metrics: These include likes, shares, comments, and overall interaction rates across social media platforms, reflecting how engaging and relatable your content is to your audience.
• Share of Voice: Measures the visibility and presence of your brand in the marketplace by comparing its promotional activities to those of competitors, highlighting market influence and engagement levels.

2. Demand Generation KPIs

Demand generation KPIs measure the effectiveness of strategies designed to create awareness and interest in a company’s products or services. Key metrics include:

• Lead Generation: This KPI tracks the number of new leads generated over a specific time period. It’s essential for gauging the effectiveness of demand generation campaigns in attracting potential customers. Learn more.
• Inquiries: This measures the total number of potential customers who initiate contact or express interest in your product or service without any prompt. It can include phone calls, emails, or filled forms on your website, indicating initial interest.
• Marketing Qualified Leads (MQLs): MQLs are those leads that have been deemed more likely to become a customer compared to other leads. This qualification is based on lead scoring metrics that may include the lead’s behaviour, engagement, or demographic information.
• Sales Qualified Leads (SQLs): SQLs are leads that your sales team has accepted as worthy of a direct sales follow-up. This KPI measures the effectiveness of your lead qualification processes and the alignment between marketing and sales.
• Conversion Rates: Monitoring the conversion rates from leads to MQLs, and from MQLs to SQLs, and finally to opportunities, helps assess the efficiency of your marketing funnel and sales process.
• Opportunity-to-Win Ratio: This measures the number of sales opportunities that convert to actual sales. It helps in evaluating the effectiveness of the sales strategies and the quality of the leads generated through marketing efforts.
• Pipeline Value: Pipeline value measures the total pound or dollar value of all opportunities in the sales pipeline. This KPI provides insight into the potential future income that could be realised if all the opportunities are won.
• Cost Per Lead: This calculates the cost-effectiveness of marketing campaigns in generating leads. It is derived by dividing the total cost of the campaigns by the number of leads generated.
• Customer Acquisition Cost (CAC): CAC is the cost associated in acquiring a new customer. This includes all marketing and sales expenses over a specific period divided by the number of customers acquired during that period.
• Customer Lifetime Value (CLV): CLV is the total revenue a business can expect from a single customer account throughout their relationship. Comparing CLV to CAC provides insights into the long-term value of the demand generation strategies.
• Account Engagement: For B2B companies, especially those with an Account-Based Marketing (ABM) approach, measuring engagement within targeted accounts can be vital. This includes metrics like account penetration, interaction depth, and coverage.
• Return on Investment (ROI): ROI in demand generation measures the total return on marketing investments relative to the cost of those investments. It’s crucial for evaluating the financial impact of demand generation activities.

3. Brand Equity KPIs

Brand equity refers to the value a brand adds to a product or service. This can be seen as the differential effect of brand knowledge on consumer response to the marketing of the brand. A strong brand equity means customers are more likely to choose your brand over a competitor’s because of the perceived quality and reliability associated with the name.

• Brand Recall: The ability of a consumer to recognise or recall the brand as part of a particular product category.
• Customer Sentiment Analysis: Using tools to analyse customer feedback, reviews, and social media mentions to gauge overall sentiment towards the brand.
• Price Premium: The ability of a business to charge a premium price due to the strong brand, which customers are willing to pay.
• Sentiment Score: Evaluates the emotional tone behind social media mentions or reviews, quantifying positive, negative, and neutral sentiments to gauge public perception of a brand.

"Marketing KPIs serve as compasses, guiding campaigns toward strategic goals. By measuring metrics like ROI and customer retention, businesses can ensure their efforts are not just impactful, but also aligned with overarching objectives."

Paul Mills
CEO & Founder, VCMO

4. Customer Satisfaction and Experience KPIs

Understanding how customers perceive their interactions with your business is crucial for driving repeat business and loyalty. Metrics in this category help measure the quality of the customer experience and satisfaction.

• Customer Satisfaction Score (CSAT): Directly asks customers to rate their satisfaction with an interaction or overall experience.
• Customer Effort Score (CES): Measures the ease of customer interaction and resolution of their issues.
• Service Quality: Analysis of various aspects of service, such as speed, accuracy, and courtesy, often through customer feedback.
• Net Promoter Score (NPS): A metric that assesses customer loyalty and satisfaction by calculating the difference between the percentage of promoters and detractors from customer survey responses. Learn more.

5. Innovation and Growth KPIs

To ensure long-term competitiveness, companies should measure how effectively they are innovating and capturing new market opportunities.

• Market Share Growth: Measures changes in a company’s market share within its industry.
• New Product Adoption Rate: Tracks how quickly customers are adopting new products or services.
• Percentage of Revenue from New Products: Assesses financial contribution from new products or services introduced within a certain timeframe.

6. Pipeline KPIs

Pipeline metrics help in understanding the effectiveness of marketing efforts in contributing to the sales pipeline and revenue generation.

• Second Stage Meetings: The number of meetings or significant interactions that move potential customers closer to a sale.
• Sales Qualified Leads (SQLs): Leads that have been vetted by both marketing and sales teams and are deemed ready for the next step in the sales process.
• Deals Closed from Marketing: The number of sales closed where marketing efforts directly contributed.
• Pipeline Progression: This tracks the movement of leads through the sales funnel, offering insights into the efficiency and speed of the sales process.

"Effectiveness of marketing KPIs lies in their ability to quantify success. Tracking metrics like CTR and conversion rates provides tangible insights, allowing marketers to adapt strategies and drive meaningful results."

7. Conversion KPIs

These metrics focus on the effectiveness of converting interest into actionable outcomes like leads or sales.

• Conversion Rate: The percentage of visitors who complete a desired action out of the total number of visitors.
• Value Per Visit: The economic value generated on average from each visit, which helps in understanding the return on digital interactions.
• Marketing Qualified Leads (MQLs): Leads that have shown interest in what a brand has to offer and are likely to become customers, as determined through lead scoring.

8. Marketing Performance KPIs

These metrics evaluate the efficiency and profitability of marketing activities.

• Cost Per Lead: This calculates the cost effectiveness of marketing campaigns in generating leads.
• Marketing ROI: Measures the return on investment from marketing activities, comparing the profit generated to the cost incurred.
• CLV/CAC Ratio (Customer Lifetime Value to Customer Acquisition Cost): An essential financial metric that compares the total value a customer is expected to contribute over their lifetime with the cost of acquiring them.
• Customer Acquisition Cost (CAC): CAC measures how much it costs on average to acquire a new customer. This metric is particularly useful when paired with Customer Lifetime Value (CLV), as it shows whether the costs of acquiring new customers are justified by the revenue those customers generate over time.

9. Retention KPIs

Retention metrics are critical for understanding customer loyalty and satisfaction, which influence long-term business sustainability.

• Customer Churn: The rate at which customers stop doing business with a company.
• Customer LTV (Lifetime Value): The predicted net profit attributed to the entire future relationship with a customer.
• Net Promoter Score (NPS): Measures customer loyalty and the likelihood of customers recommending your company to others.
• Customer Retention Cost: CRC is an important metric that businesses use to evaluate how much they are spending to keep existing customers engaged and continuing to purchase their products or services. It involves all the costs associated with maintaining relationships with current customers to ensure their continued business, loyalty, and satisfaction.

10. Dark Social KPIs

Dark social refers to the sharing of content through private channels such as messaging apps, email, and secure browsing, which are not typically traceable by standard analytics tools.

• Direct Traffic Analysis: Increase in unexplained direct traffic can be an indicator of dark social sharing.
• Private Sharing Rate: Estimation of content shares that occur through non-public or untraceable methods, often derived from surveys or indirect analytics.
• Platform-Specific Engagement: Monitoring engagement metrics in private groups or chat applications where direct tracking is permissible.

11. Digital Marketing KPIs

Digital marketing KPIs are metrics that assess the performance of online marketing activities. They track outcomes such as website traffic, conversion rates, social media engagement, and ROI, enabling marketers to optimise campaigns and enhance their online presence effectively.

• Click-Through Rate (CTR): Measures the percentage of people who click on a link or advertisement after seeing it. It helps assess the effectiveness of online ads or email campaigns. Learn more.
• Bounce Rate: The percentage of visitors who navigate away from the site after viewing only one page. This can indicate the relevance and engagement of initial content. Learn more.
• Traffic Sources: Tracks where web traffic originates, whether through search engines, direct visits, referrals, or social media platforms. This helps in understanding which channels are most effective in driving traffic.
• Unique Visitors: Tracks the number of distinct individuals requesting pages from the website during a given period, regardless of how often they visit. This metric is essential for understanding the reach of your website. This helps in distinguishing between new and returning visitors, providing a clearer picture of the website's ability to attract a broad audience.
• Average Duration: Measures the average amount of time that visitors spend on your website during a single session. This metric is a key indicator of user engagement and content relevance. A higher average duration typically suggests that the content is engaging and meets the needs or interests of the visitors, prompting them to spend more time exploring the website.
• Page Views Per Visit: Measures how many pages a typical visitor views before leaving. This can be a good indicator of how engaging and well-structured your website is.
• Followers Growth: Tracking how the number of followers changes over time can provide insights into how well your brand attracts and retains interest on social media. Rapid growth in followers might be an indication of effective campaigns or viral content.
• Shares and Retweets: Shares and retweets extend the reach of your posts beyond your immediate followers to the networks of those sharing your content. This measure is crucial for understanding the virality and appeal of your content.
• Comments: Comments are indicative of deeper engagement as they require more effort from users than likes. They can provide insights into how your audience perceives your content, including feedback, sentiments, and discussions generated by your posts.
• Audience Demographics and Interaction Times: Understanding who interacts and when they interact with your content can help tailor your social media strategy to better fit your audience’s preferences and schedules.
• Backlinks: Measures the number and quality of external links pointing to a website from other online sources. It measures the website's authority, credibility, and search engine visibility. By monitoring backlinks, businesses can assess their website's SEO performance, improve organic search rankings, and enhance online reputation and brand visibility.

12. Content Marketing KPIs

Content Marketing KPIs measure the effectiveness of content strategies in engaging audiences and driving business goals. Key metrics include website traffic, engagement rates, lead generation, and SEO performance, helping marketers optimize content to maximize impact and ROI.

• Content Engagement: Measures how users interact with content, including time on page, comments, shares, and likes. This can indicate how compelling and valuable your content is to your audience.
• Lead Generation from Content: The number of leads generated through specific pieces of content, helping to track the direct impact of content marketing on sales.
• Content Conversion Rate: The percentage of content viewers who take a desired action, such as signing up for a newsletter or downloading a resource.

13. Social Media KPIs

Social Media KPIs track the performance of marketing efforts on social platforms such as LinkedIn, Instagram, Facebook and YouTube. Key metrics include follower growth, engagement rates, click-through rates, and conversion rates. These indicators help marketers refine strategies, increase audience interaction, and boost overall effectiveness.

• Follower Growth Rate: Tracks the speed at which a brand’s following on social media platforms increases, indicating brand popularity and social media strategy effectiveness.
• Social Share of Voice (SSoV): Measures the number of mentions of your brand on social media compared to competitors. It provides insight into brand visibility and reputation.
• Influence Score: Attempts to quantify the influence of social media content and its creator on the audience, often using algorithms to assess reach and engagement.
• Cost Per Like: Measures the average expense incurred to generate one like on a social media post, calculated by dividing total campaign cost by the number of likes received.
• Cost Per Follower: Indicates the average cost spent to gain one new follower on a social media platform, derived by dividing the total campaign expenditure by the number of new followers.

"Measurement of marketing KPIs provides clarity in the fog of marketing activities. With metrics such as engagement rates and brand sentiment, businesses gain actionable intelligence, enabling agile decision-making and continuous improvement."

14. Email Marketing KPIs

Email Marketing KPIs are metrics used to evaluate the effectiveness of email campaigns. They include open rates, click-through rates, conversion rates, and unsubscribe rates. These KPIs help marketers optimize content, improve engagement, and enhance overall campaign performance.

• Email Delivery Rate: The percentage of emails that successfully reach the recipient's inbox. This helps assess the health of your email list and the effectiveness of your email delivery infrastructure.
• Email Open Rate: The percentage of recipients who open an email. This metric is crucial for evaluating the appeal of your email content, particularly the subject line.
• Email Conversion Rate: Measures how many recipients performed the desired action after opening an email, providing insight into the effectiveness of the email content and call-to-action.
• Subscribers: This measures the growth and engagement of a company's email subscriber base. It tracks metrics such as the number of subscribers, subscription rate, and email open and click-through rates to evaluate the effectiveness of email campaigns and audience retention strategies.

15. Customer Behaviour KPIs

Customer Behavior KPIs track how consumers interact with a brand across various touchpoints. Key metrics include purchase frequency, average order value, website engagement, and customer retention rates. These KPIs help businesses understand consumer preferences and tailor marketing strategies effectively.

• Customer Retention Rate: Measures the percentage of customers who remain active over a specific period. It's crucial for understanding customer loyalty and the effectiveness of retention strategies.
• Average Order Value (AOV): Calculates the average amount spent each time a customer places an order. It can help in strategic pricing, marketing, and product placement decisions.
• Purchase Frequency: The average number of purchases made by a customer over a certain period, indicating customer loyalty and satisfaction.
• Shopping Cart Abandonment Rate: Measures the percentage of online shoppers who add items to their cart but exit without completing the purchase, indicating potential issues in the checkout process.

16. Financial KPIs

Financial KPIs measure the economic performance and health of a business. These indicators are crucial for assessing financial stability, guiding investment decisions, and driving strategic planning.

• Return on Ad Spend (ROAS): Measures the revenue generated for every pound or dollar spent on advertising. It is crucial for assessing the effectiveness of advertising campaigns.
• Profit Margin Per Customer: Looks at the profit generated from each customer, helping to assess the value customers bring beyond their initial purchase.
• Budget Variance: The difference between the budgeted amount for marketing and the actual amount spent. This helps in financial planning and control.

17. Market Share KPIs

Market Share KPIs assess a company's competitive position within its industry and help businesses understand their influence in the market and strategize for expansion and dominance.

• Overall Market Share: This is the most straightforward measure of market share. It is calculated by dividing the company’s total sales revenue by the estimated total market sales revenue. This metric provides a snapshot of the company’s relative size within the industry. It helps in understanding the reach and dominance of the company in the market.
• Relative Market Share: Relative market share indexes a firm’s market share against that of its largest competitor. It is calculated by dividing your company’s market share by the market share of the biggest player in the market. This metric is used to benchmark against the best and to gauge your company’s competitiveness in the market.
• Market Share by Segments: Market share can also be calculated within specific customer segments or geographic regions. This is particularly useful for companies operating in diverse markets or offering multiple product lines. It helps businesses understand where they are performing well and where they need to improve or invest more heavily.
• Market Share Growth Rate: This metric measures the change in a company’s market share over time. It is calculated by taking the difference in market share between two periods and dividing it by the market share at the start of the period. This helps companies evaluate the effectiveness of their growth strategies relative to the market dynamics.
• Unit Market Share: Unit market share is calculated by dividing the total units sold by a company by the total units sold in the market. This metric is sometimes preferred over revenue market share because it is not influenced by price changes and provides a clearer picture of the volume of goods or services a company is moving relative to its competitors.
• Value Market Share: Value market share is calculated by considering the revenue generated rather than units sold. This can provide insights into how premium pricing strategies or discount campaigns are affecting the company’s market positioning compared to competitors who may be selling more units but generating less revenue.
• Profit Market Share: While less common, some companies also look at profit market share, which focuses on the portion of total industry profits captured by the company. This can be a more relevant measure for industries where profit margins vary significantly between players.
• Penetration Rate: Although not a direct market share metric, the penetration rate can inform market share analysis. It measures the percentage of potential customers in a market who have purchased a company’s product or service. This metric helps in assessing the market saturation and potential room for growth.
• Share of Wallet: Share of wallet refers to how much of a customer’s total spending in your category is captured by your brand. It is a more focused metric that looks at customer loyalty and spending allocation among competitors within the same market.
• Customer Retention Rate as a Market Share Indicator: Customer retention can indirectly impact market share by maintaining a stable base of recurring revenue, which can be crucial in markets where acquiring new customers is more challenging or expensive.

Summary on Marketing KPIs

In conclusion, marketing KPIs are invaluable tools for gauging the effectiveness of marketing campaigns and strategies. By carefully selecting and monitoring these indicators, businesses can ensure that their marketing efforts are not only aligned with their strategic goals but are also efficiently driving desired outcomes. Ultimately, the thoughtful application of KPIs empowers marketers to make informed decisions, optimise operations, and significantly enhance the overall impact of their marketing activities on business success.

About VCMO

VCMO helps SMEs and portfolio companies with the high-level marketing leadership they need to grow and succeed across the full business lifecycle. Its roster of highly accredited Fractional Chief Marketing Officers brings the expertise, strategy and execution to transform marketing potential into a competitive advantage that delivers predictable revenue and sustainable growth.