What Is The Most Important KPI’s for a Marketing Strategy?

    When executing on a marketing strategy, it’s all wasted if you’re measuring how well you’re performing. Without KPI’s (key performance indicator), it’s difficult to know if your strategies are working, or find opportunity to improve. Here are the most important KPI’s for your marketing campaign.

    Paid Advertising KPI’s

    Conversion Rate:

    Percentage of visitors to your website that complete a desired goal (a conversion) out of the total number of visitors.

    Importance: A poor conversion rate may indicate that you have a poor performing landing page, difficult sign up process, or you are targeting the wrong demographic.

    Cost per Acquisition:

    The cost to convert a visitor to a specific goal. The goal could be purchasing a product, customer sign up for your service, or a newsletter sign up.

    Importance: This is a great indicator if you can afford to continue to run the ads. If you’re only making $20 on the product, but is costing you $30 to acquire a customer. You’re effectively losing $10 on each sale and need to find an alternative to market your product.

    Cost per Lead:

    The cost to pay a visitor to check out your product or site. Depending on your ad structure, it can be the cost per click (you pay per each click) versus cost per impressions (you pay when the ad is viewed).

    Importance: For most platforms, this is controllable by setting a target cost per lead. Most advertising system will adjust it’s bid to hit your target.

    Customer LTV:

    LTV is defined as life time value which is the amount the customer is expected to spend on your product/service in their life time. To calculate yearly LTV, average purchase x # purchases a year x average profit margin.

    Importance: You might not make money on the first purchase of the customer. The customer might come back and purchase other products.

    Website Traffic KPI’s

    Unique Sessions

    A session is a group of user interactions with your website that take place within a given time frame. You can think of it as a visit of an unique visitor.

    Importance: By tracking this, you can determine whether your website is growing in readership.

    Session Length

    The session length is the average time a visitor stays on your website. Session Length can be defined more narrowly as needed (e.g. visitor may forget to close the browser).

    Importance: By tracking this, you know how engaged your visitors are. Do they continue to look around the website or read through your articles?

    Bounce Rate

    A bounce is when a customer visits a page on your website and leaves after the first page. The bounce rate is the total number of bounces / total number of visitors

    Importance: If the success of your site depends on users viewing more than one page (ie. blog or news channel), then, a high bounce rate is bad.

    Referral Rate

    The referral rate is the number of customers sharing your article/website divided by the total amount of visitors.

    Importance: This measures if your articles or website has provided enough value for the visitor to share with their friends. Having a low referral rate means you either need to add more share buttons to your page or improve on the quality of your content.

    Page Load Time

    Page load time is the time it takes a visitor to download and view your website.

    Importance: Research indicates 53% of people will leave a page if it takes longer than 3 seconds to load. You are losing lots of traffic and rank lower on Google with a low, unresponsive site.

    Social Media KPI‘s


    Social media refers to the number of users who have come across a particular content.

    Importance: Similar to unique sessions, this measures if you’re using the right hashtags for your social media posts to drive views. If no one sees your content, no one can engage with it.


    Social media engagement refers to when a user interacts with your content. This includes liking a post, commenting, or sharing it with friends.

    Importance: Similar to referral rates, this measure if your content measures up to the audience. If you produce good content, naturally you’ll have high engagement, ranking your content higher in user feeds.

    Email KPI’s

    Open Rate:

    Email open rate refers to the percentage of customers who open an email. These rates can vary depending on the subject line and the relevancy of the subject matter for subscribers, but a healthy open rate is typically in the 20-40% range.

    Importance: There are 3 main reason why readers are not opening your email: 1) email sent directly to junk, 2) readers never signed up to your list and 3) poor subject line. A/B testing of your email campaigns can help with optimizing your email campaigns.

    Click Rate:

    Email click rate refers to the percentage of customer who clicks a link in your email. This is highly relevant for email campaigns where you’re looking to push users to a landing page to sell a product.

    Importance: Similar to bounce rates, you’re looking to push content to drive an action from the reader. Make sure the call to action is clear and visible. Keep emails short and to the point. They’re not articles but summaries to push a point.

    Are there core KPI’s you’re using to track the performance of your marketing campaigns? Let me know in the comments and I’ll have them added to the article.


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