95% of marketers agree that you must tie your business goals with marketing KPIs to target your efforts effectively. As a business owner, it’s essential to get the lay of the land and adapt continuously to survive in the market. Doing so helps you identify areas for improvement, allocate resources effectively, and ultimately, drive more revenue for your business.

Here are the Key performance indicators to help you make better decisions and improve your overall strategy.

Which Marketing KPIs can help you achieve business goals?

A Key Performance Indicator (KPI) is a metric we use to measure the success of a particular aspect of a business. In marketing, we track and measure the success of marketing campaigns and initiatives.

Customer Acquisition Cost (CAC)

It measures the Cost of acquiring a new customer. It helps determine the efficiency of a company’s marketing and sales spending.

Formula: Total Marketing and Sales Cost / Number of New Customers

Tools to use: Amplitude, Heap, Mixpanel

Lifetime Value of a Customer (LTV)

It calculates a customer’s estimated revenue during their lifetime with a company. It helps prioritize customer retention and loyalty efforts.

Formula: Average Revenue per Customer x Gross Margin per Customer x Average Customer Lifetime

Tools to use: Segment, Mixpanel, Amplitude

Return on Investment (ROI)

It measures the profitability of a marketing campaign by comparing the revenue generated to the expenditure.

Formula: ROI = (Revenue – Investment Cost) / Investment Cost
Tools to use: Google Analytics, Mixpanel, Heap

Return on Ad Spend (ROAS)

It measures the return on Investment specifically for advertising spend. You can determine the effectiveness of advertising campaigns from ROAS.

Formula: Revenue / Advertising Spend

Tools to use: Google Ads, Facebook Ads, Bing Ads

Marketing Qualified Leads (MQL)

It will help you identify leads more likely to become paying customers based on their engagement with marketing efforts and materials.

Tools to use: Marketo, Pardot, Hubspot

Sales Qualified Leads (SQL)

You can identify leads that have been vetted and deemed ready for the sales team to close.

Tools to use: Salesforce, Pipedrive, Hubspot

Conversion Rate

It measures the percentage of website visitors that take a desired action, such as making a purchase or filling out a form.

Formula: Conversion Rate = Number of Conversions / Number of Website Visitors

Tools to use: Google Analytics, Mixpanel, Heap

Referral Traffic

It helps determine the amount of traffic received from sources outside a company’s website, such as referral links from other websites.

Tools to use: Google Analytics, Mixpanel, Heap

Net Promoter Score (NPS)

It helps you measure customer satisfaction and loyalty by asking customers to rate their likelihood of recommending a company to others.

Tools to use: SurveyMonkey, Typeform, Google Forms

Customer Retention

It measures the number of customers who continue to do business with your company over time. It provides insight into the loyalty of your customers and the effectiveness of your customer service and retention strategies.

Tools to Use: Google Analytics, Intercom, Mixpanel, Segment

Organic Traffic

It is the number of website visitors who arrive at your website through a search engine result without any paid promotion. It provides insight into the effectiveness of your SEO efforts.

Tools to Use: Google Analytics, SEMRush, Moz, Ahrefs


Without analytics, you can’t draw the right conclusions about your marketing efforts and cannot optimize your Investment in marketing activities. Ultimately, you should pinpoint your own marketing KPIs. That way, you can find the most relevant results for your business and use them to make progress.

Always remember with the right data comes clarity, and with clarity comes the power to make an impact.