Key Performance Indicators

Key Performance Indicators (KPIs) are the metrics you use to gauge progress toward your objectives. A KPI is a quantifiable metric that measures the performance or progress of a specific goal or business outcome​. In other words, KPIs tell you if you’re hitting your targets or not.

KPIs translate your goals into numbers. For example, if your objective is to increase lead generation, relevant KPIs might include number of new leads per month, cost per lead, and lead-to-customer conversion rate. If your goal is about improving brand presence, KPIs could be website organic traffic, social media engagement, or Net Promoter Score. Choose KPIs that directly reflect what success looks like for that goal.

Good KPIs are closely tied to strategic objectives. They should measure the outcomes that matter most to the business. For instance, a B2B marketing team focused on revenue growth might track average deal size, sales cycle length, and marketing-sourced revenue as KPIs, whereas a team focused on customer success might track churn rate or customer lifetime value.

Considerations when selecting KPIs

• Use a mix of leading and lagging indicators: Leading indicators (like website traffic or lead quality) can predict future results, while lagging indicators (like quarterly sales revenue) show outcomes. Both types are useful. For example, pipeline volume might predict future sales, while quarterly revenue confirms if the sales goals were met.

• Keep the KPI set manageable: Don’t overload with metrics. It’s better to track a handful of meaningful KPIs than dozens of metrics. Identify 5–7 core KPIs that best indicate progress toward your goals​. This keeps your reporting focused and actionable.

Example Marketing KPIs:

Common B2B marketing KPIs include:

• Lead metrics → number of new leads, MQLs per month, cost per lead​.
• Conversion metrics → conversion rate at each funnel stage, demo or trial sign-up rate.
• Sales impact → marketing-generated opportunities, contribution to revenue, average deal value, pipeline velocity​.
• Customer metrics → customer acquisition cost (CAC), churn rate, customer lifetime value.
• Brand metrics → website traffic, search engine rankings, social media engagement, brand awareness survey scores​.
• ROI metrics → return on marketing investment, pipeline-to-spend ratio, etc….

tip

Choose KPIs that make sense for your specific strategy and define a clear target value for each (e.g., “increase conversion rate from 2% to 4%” or “achieve 50 demo requests per month”). Remember, KPIs themselves are just numbers – their value comes from analysing them against your targets and deriving insights to improve your strategy​.