KPIs vs ordinary metrics
Every KPI is a metric, but most metrics aren't KPIs. A KPI is tied directly to a goal you care about, like revenue, profit or new customers. Page views and likes are metrics. Cost per acquisition and revenue from new customers are more likely to be KPIs.
What makes a good KPI
It's tied to a business goal, measured the same way every time, reviewed on a regular schedule and something your team can influence. If a number moves and nobody would change a decision, it probably isn't a KPI.
Common marketing KPIs
Cost per acquisition, customer acquisition cost, return on ad spend, conversion rate, qualified leads or pipeline, customer lifetime value and revenue from marketing-sourced customers.
Why KPI matters
Without clear KPIs, teams optimize whatever is easiest to measure. That usually means clicks and traffic, not profit. A few well-chosen KPIs keep everyone focused on outcomes the business actually needs.
Changing the KPI changed the decisions
A software company judged its ads on cost per lead and kept funding the cheapest campaigns. When it switched its KPI to cost per qualified opportunity, it found the cheapest leads rarely turned into sales and moved budget to campaigns that cost more per lead but produced real pipeline.
Common mistakes
Too many KPIs
Tracking 30 'key' numbers means none are key. Pick a handful that tie to your goals and report the rest as supporting metrics.
Vanity metrics
Impressions, followers and traffic look good in reports but rarely show whether marketing makes money. Use them as diagnostics, not goals.
No target or timeframe
A KPI without a target and a review date is just a number. Set what good looks like and when you'll check it.
Where we work on this