Top 10 KPIs For Marketing Department

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Key Performance Indicators or KPIs For Marketing are metrics that measure the success of marketing efforts. These indicators help businesses understand if their marketing strategies are effective and if they are achieving their goals.

For e.g., website traffic, conversion rates, customer acquisition costs, social media engagement and email open rates. So, by tracking and analyzing these metrics, businesses can adjust their marketing tactics to optimize their campaigns for better results.

Also, Marketing KPIs enable businesses to identify areas that need improvement and allocate resources effectively. Moreover, incorporating marketing KPIs into a company’s strategy can improve decision-making, increase ROI and drive growth.

I am sure you know what we mean by KPIs. However, let’s define KPIs for those who are unaware. KPIs are measurements that organizations use to determine whether they’re meeting their objectives.

Companies these days are all about those KPIs. Key Performance Indicators are the golden goose that executives love to worship. So, to help these companies out, we’re going to start covering KPIs that they’d love to disclose. That’s right, we’re going to talk about all those numbers that make shareholders happy. But we’ll do it in a way that’s fun and informative.

So, buckle up, folks! We’re going to dive deep into the world of KPIs and uncover the truth behind the numbers. And who knows, we might even have a little fun along the way!

Top 10 KPIs For Marketing Department

1. Marketing ROI

One of the 1st KPIs for marketing is Marketing ROI or Return on Investment. It is a fantastic concept that will surely make your accountant smile. Who doesn’t love spending money on marketing campaigns without knowing if they’re effective or not? Also with Marketing ROI, you can finally put a number on how much money you wasted!

But in all seriousness, measuring the ROI of marketing efforts is crucial for any business to make informed decisions about where to allocate resources. By analyzing the data, you can determine which marketing tactics are providing the best return and adjust your strategy accordingly. So, while the idea of measuring ROI may not be the most exciting thing in the world, it can save you a lot of money in the long run.

Use case

Marketing ROI (Return on Investment) is a metric used to measure the financial impact of marketing efforts. It evaluates the revenue generated from marketing activities to the cost of those activities. Various marketing channels such as digital advertising, email marketing, and social media calculate Marketing ROI. So, by analyzing the ROI of different campaigns, businesses can determine which ones are the most effective and allocate their resources accordingly. Marketing ROI can also help businesses identify areas where they may need to adjust their strategies to improve performance. Overall, using marketing ROI as a measurement tool can help businesses make data-driven decisions, increase profitability, and optimize their marketing efforts for better results.

How to measure?

(Sales Revenue – Marketing cost) / Marketing cost = ROI

2. Churn Rate

Well, churn rate, is a delightful marketing KPI. This metric shows you how many customers have abandoned the ship. Isn’t that just grand? I mean, who doesn’t love seeing the number of people leaving their brand to grow day by day?

But seriously folks, the churn rate is an essential KPI. As it measures customer retention. It lets you know if your customers are sticking around or if they’re saying “See ya later, alligator.” So, by tracking this metric, you can identify patterns and behaviours that lead to churn. Thereby, take steps to prevent it. Thus, keep an eye on your churn rate. Meanwhile who knows, maybe you’ll turn those “adios” into “hola”!

Use case

Churn rate is a marketing KPI that measures the rate at which customers stop doing business with a company. Understanding the churn rate is crucial for businesses. Because it helps them identify if their customers are satisfied with their products or services.

High churn rates may indicate that there are issues with the customer experience or that competitors are offering better alternatives. So, by monitoring and reducing churn rates, businesses can improve customer retention, increase revenue, and build brand loyalty.

Churn rate is a vital KPI for any company looking to maintain a healthy customer base and ensure long-term success.

How to measure?

It is calculated by dividing the number of customers lost over a given period by the total number of customers at the beginning of that period.

3. Traffic to MQL (Marketing Qualified Lead) Ratio

The Traffic to MQL Ratio is a marketing KPI that measures the effectiveness of a company’s marketing efforts in generating Marketing Qualified Leads (MQLs) from website traffic.

MQLs are potential customers who have expressed interest in a company’s product or service and are likely to become paying customers.

A high Traffic to MQL Ratio indicates that a company’s marketing strategies are attracting the right audience and converting them into potential customers.

Use case

The Traffic to MQL (Marketing Qualified Lead) Ratio is a marketing KPI that measures the effectiveness of a company’s marketing efforts in generating leads. This ratio compares the number of website visitors to the number of Marketing Qualified Leads generated.

An MQL is a lead that has shown a certain level of interest in a product or service and is more likely to become a customer. By tracking this KPI, businesses can identify the channels and campaigns that are driving the most MQLs and adjust their marketing tactics accordingly.

A high Traffic to MQL Ratio indicates that the company is attracting qualified leads and effectively nurturing them through the sales funnel. This KPI is essential in determining the ROI of marketing campaigns and making data-driven decisions to optimize lead generation.

How to measure?

This ratio is calculated by dividing the number of MQLs generated from website traffic by the total number of website visitors.

4. Marketing revenue attribution

Marketing revenue attribution is the process of determining how much revenue a marketing campaign has generated. This involves tracking the customer journey from the initial point of contact to the final purchase and assigning credit to each touchpoint along the way.

Marketing KPIs related to revenue attribution include the percentage of revenue generated by a specific campaign, the customer lifetime value, and the return on investment (ROI) of each marketing channel.

By understanding how much revenue each campaign generates, businesses can allocate their resources more effectively and make informed decisions about which marketing channels to invest in. This allows them to maximize their revenue and optimize their marketing strategies for better results.

Use case

Marketing revenue attribution is the process of identifying which marketing efforts are generating revenue for a business. By tracking and analyzing various touch points along the customer journey, such as social media ads, email campaigns, and website visits, businesses can better understand which channels and tactics are driving sales.

Marketing KPIs, such as cost per acquisition (CPA), customer lifetime value (CLV), and return on investment (ROI), can be used to measure the effectiveness of marketing revenue attribution strategies. By optimizing marketing efforts based on these KPIs, businesses can improve their marketing performance, allocate resources more effectively, and ultimately drive more revenue.

How to measure?

Every organization has its own customized model to measure it.

5. Customer Acquisition Cost (CAC)

Customer Acquisition Cost (CAC) is a marketing KPI that measures the cost incurred to acquire a new customer. It includes all marketing and sales expenses involved in acquiring a customer, such as advertising costs, sales commissions, and marketing software fees.

To calculate CAC, businesses divide their total marketing and sales expenses by the number of new customers acquired within a specified time frame. The goal is to keep CAC as low as possible to maximize ROI.

A high CAC can indicate inefficiencies in the marketing and sales process, while a low CAC means that businesses are acquiring customers at a lower cost, making it easier to achieve profitability and growth.

Use case

Customer Acquisition Cost (CAC) is a marketing KPI that helps businesses understand the cost of acquiring a new customer. By tracking CAC, companies can determine if their marketing and sales efforts are cost-effective and identify areas for improvement.

CAC is calculated by dividing the total cost of sales and marketing by the number of new customers acquired during a specific period. This metric can help businesses determine their ROI and allocate resources accordingly.

By monitoring CAC, companies can identify the most effective marketing channels, target audiences, and messaging. Ultimately, CAC enables companies to optimize their marketing and sales efforts, increase efficiency, and drive growth.

How to measure?

Cost of Sales and Marketing divided by the Number of New Customers Acquired

6. Digital marketing ROI

Digital marketing ROI is the magical metric that shows us how much money we’ve made for every penny we’ve spent on advertising. And let’s not forget the KPIs. Key performance indicators that tell us how well our digital marketing campaigns are performing. It’s like having a report card for your marketing efforts, except your grade is based on how much money you’ve made, not how well you can recite Shakespeare. 

Use case

It’s the metric that determines whether your marketing campaign was a roaring success or a colossal failure. And let’s be honest, it’s what separates the winners from the whiners. But fear not, dear marketer, for there is hope. By tracking your digital marketing ROI, you can prove to your boss that you’re not just sitting around playing Candy Crush all day. You can show them that your social media posts are driving traffic and that your email campaigns are converting leads into customers.

How to measure?

(return – initial Investment / initial investment) * 100.

7. Traffic-to-lead ratio (new contact rate)

Traffic-to-lead ratio, or as I like to call it, the “new contact rate,” is the marketing KPI that measures how effective your business is at turning website visitors into leads. Think of it like trying to catch fish – you can have all the bait in the world, but if you’re not reeling anything in, you’re just wasting your time.

So, if your traffic-to-lead ratio is high, you’re like a master fisherman, expertly hooking leads left and right. But if it’s low, you’re more like that kid who gets his fishing line tangled in a tree – not exactly a recipe for success.

Use case

This little KPI is a saviour for marketers. Particularly in helping them figure out how many new people they’ve managed to lure into their web of wonders. So, it’s like counting how many fish you caught after a day of fishing – except you don’t have to deal with the smell.

Traffic-to-Lead Ratio is the perfect measure of your marketing prowess. Because it tells you how effective your campaigns are at turning strangers into potential customers. Moreover, the best part is, it’s easy to calculate. Just divide the number of new leads you generated by the total number of visitors to your site. Voila! You have your ratio.

How to measure?

Divide the number of visits by the number of leads generated over the same timeframe.

8. Landing page conversion rates

This little metric measures the success of your landing page in convincing people to take action and become customers. So, it’s like a cool kid at the party – everyone wants to impress. Also, let’s be real, who doesn’t love a good conversion rate? It’s like hitting a home run, nailing a job interview or finally beating your high score in that addictive mobile game.

Use case

Landing page conversion rates are an essential marketing KPI for businesses to track the effectiveness of their digital marketing efforts. Basically, a landing page is a website where users land after clicking on a digital ad or search result.

The conversion rate is the percentage of users who complete a desired action, such as filling out a form or making a purchase. Therefore, with this businesses can assess the effectiveness of their advertising campaigns and optimize their landing pages. Thereby, leading to improved conversion rates and ultimately driving more revenue.

Tracking landing page conversion rates is an important aspect of digital marketing, allowing businesses to make data-driven decisions and maximize the return on their advertising investment.

How to measure?

Divide the number of goals achieved in a given time frame by the total number of visitors to your website, then multiply that number by 100.

9. Return on Ad Spend (ROAS)

Return on Ad Spend (ROAS) is a marketing Key Performance Indicator (KPI) used to measure the effectiveness of advertising campaigns. Basically, it is calculated by dividing the revenue generated from an ad campaign by the cost of the campaign. Also, this is one of the KPIs for marketing that helps marketers understand the profitability of their advertising efforts. As well as make data-driven decisions on where to allocate their ad spend.

A high ROAS indicates that the campaign is generating more revenue than it costs, while a low ROAS suggests that the campaign is not producing the desired results. ROAS can be used to optimize advertising strategies and improve the overall return on investment (ROI) of marketing efforts.

Use case

Return on Ad Spend (ROAS) is a marketing KPI that measures the effectiveness of an advertising campaign in generating revenue for a business. It is calculated by dividing the total revenue generated from the campaign by the total cost of the campaign.

ROAS helps marketers determine the most profitable channels and campaigns to allocate their advertising budget. It also enables them to optimize their campaigns to increase their return on investment (ROI).

ROAS is a valuable KPI for businesses of all sizes, as it provides insight into the effectiveness of their advertising efforts and helps them make data-driven decisions to improve their marketing strategies.

How to measure?

Just divide the revenue by the cost.

10. Follower Growth

Follower growth is a key performance indicator (KPI) in marketing. It measures the increase or decrease in the number of followers or subscribers on a particular social media platform or website over a specific time. This is an important metric for businesses and individuals who want to assess the effectiveness of their marketing strategies. As well as the engagement level of their audience.

Follower growth can be used to track the success of social media campaigns, content marketing efforts and overall brand awareness. Moreover, it is essential to monitor follower growth regularly. Mainly to identify areas that need improvement and adjust marketing strategies accordingly.

Use case

Follower Growth is a key performance indicator (KPI) used in social media marketing. Basically to measure the increase or decrease in the number of followers of a brand account over a specific period. This KPI is important because it can indicate the effectiveness of a brand’s social media strategy. Also, the level of interest that users have in the brand.

How to measure?

Your follower growth rate is easy to calculate. You can check the number of followers you gained for the month. Then divide it by the number of followers you had at the start of that month.

In conclusion, monitoring and analyzing KPIs for marketing is crucial for any successful marketing strategy. By tracking metrics like website traffic, conversion rates and social media engagement, businesses can make data-driven decisions to optimize their campaigns and achieve their goals. However, it’s not always easy to understand and interpret KPIs. Therefore, developing relevant skills is important.

We have also discussed Sales KPIs. Have you checked them?

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A learner, dreamer, and passionate about modern tools and technology like Excel 365, Power BI, SQL, HR Analytics, Six Sigma, WordPress and Visuals to name a few. Total Experience 15+ years including more than a decade of experience in S&P Global and ongoing 4+ years of experience with fast-growing startups & few MNCs. Clients served: Startups, MSMEs to a few of the Big 4 Consulting firms. Trained more than 2500 professionals in the last 4 years on various skills (Analytics, Content, WordPress, Finance, Entrepreneurship, etc). Last but the most important - mother of an awesome kid!


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