Table of Contents
Disclaimer: This content is provided for educational and entertainment purposes only and does not constitute professional advice. We do not guarantee the accuracy or completeness of any information presented. We are not liable for any actions taken based on this content. For specific issues or decisions, we recommend seeking professional advice.
Whenever you want to do something right, you need to monitor its progress. If you cook a piece of meat, you will use a thermometer to ensure the temperature is optimal. That’s how you are sure everything is properly prepared. You see it on the indicator that checks the cooking process.
The same thing applies to your marketing. To see if it is working as it should, you need to check the hard data – meaning, its performance indicators. For the best results, you can also use a blogger outreach agency, as they have all the necessary monitoring tools.
Still, you may also look at a few indicators yourself if you have that possibility. Here are some key performance indicators you should keep an eye on if you have a website.
Customer Acquisition Cost
The customer acquisition cost (CAC) will tell you the average amount of money that you need to spend to turn a lead into a client. This metric is very important to keep an eye on, as it can help you make better budgetary decisions.
To calculate the customer acquisition cost, you will divide the investment of your total marketing by the number of clients you were able to acquire. This will help you determine which customer type resulted in a profit and how you should modify your strategy for better results.
Return on Investment
Return on investment (ROI) is important because it tells you exactly how successful your marketing campaign was. To put it simply, the performance indicator will tell you how much money you gained, and how much it compares to your marketing cost.
To obtain this indicator, you should take your sales growth and subtract your marketing expenses. Once you divide that number by your total marketing cost, then you will get your return on investment. If the number you get is small, then you may want to consider updating your marketing campaign for more business growth.
Website Visitors
Whether you are a marketing specialist or a business owner, you need to keep a close eye on your website visitors. This is important because it tells you whether your marketing campaigns are successful or not.
If they aren’t, then your website will not end up on the first Google page – and therefore, will not gain any new clicks. When determining the number of visitors, you should check which ones are coming from organic searches and which ones are referred from social media.
Sales by Region
If you have a business that has been expanded into multiple regions, such as a franchise or an online shop, you need to check your sales by region. This way, you will know which of the regions are meeting their objective. It will also tell you which one will need some search engine optimization.
To calculate your sales by region, you need to take the revenue obtained from a specific region and then divide it by the total revenue for your company. Multiply that number by 100, and you get the percentage of sales by region.
Organic Traffic
As a website owner or manager, you need to look at your organic traffic and see how many of your visitors come from search engines. After all, when someone needs something, they will likely Google it.
Your organic traffic will tell you whether your website has visibility or not and if your keywords are working for you. The organic traffic KPI will inform you if your SEO strategy is successful or if you need to change it.
Conversion Rate
The conversion rate is the percentage of people who perform a desired action. In other words, it calculates the percentage of people that purchase from you or at least sign up for your newsletter.
This conversion rate is a good thing to know because it tells you how good you are at convincing people. This does not necessarily mean convincing them to buy from you, but at least convincing them to interact. If your website does not convert any leads, then you may want to rethink your marketing strategy.
Social Media Engagement
According to statistics, around 59.4% of the global population is on social media. If you do not get engagement there, not only are you missing out, but it also suggests that you are doing something wrong.
To calculate social media engagement, you divide the total number of interactions your content gets (likes, comments, shares) by the number of followers that you have, and then you multiply that number by 100%.
The final number will tell you exactly how your content performs based on the number of followers. You may use this calculation on the categories of topics that you post, to see which ones get the most engagement.
Contact Volume by Channel
When you start a business or a new marketing campaign, you will be the one responsible for keeping in contact with your clients. That being said, when they have support requests to make, you need to make your business easy to reach.
This is why you need to keep an eye on the volume for each channel. Do the clients prefer to contact you by phone, or is texting more of their preference? How often do you receive requests through that medium per month? These key performance indicators should be checked closely.
Number of New vs. Repeat Site Visits
As a website owner, you likely keep an eye on every visitor that you get, but you need to refine your search. Look at the number of new visits; how many of them are repeated site visits?
When this happens, chances are high that those visitors will become leads. The performance indicator will also tell you how successful your marketing effort is at bringing in new people.
Follower Growth
Nowadays, social media takes over almost everything. The more followers you have, the better your chances are of gaining visibility and selling your product. For this reason, a very useful KPI is your follower growth.
To calculate your follower growth, you need to take the number of new followers and divide it by the number of followers you had in the beginning, times 100. You will get the follower growth rate from that point in the past until now.
For instance, let’s say that you started your business with 1000 followers and gained 100 more along the way within a month. In that case, you will have a 10% growth rate.
Percentage of Product Defects
While we never want to imagine our products being defective, it may still happen. Each defective unit can bring you losses, and determining the percentage can help you come up with a solution.
Take the defective unit number and then divide it by the number of products with defects that you have. The lower the percentage for this, the better it will be.
Blog Post Visits
Many business owners pay close attention to their websites, but not as much to their blogs. Still, your blog post can increase the traffic amount you get to your site. This is why you need to carefully check the number.
Use SEO tools to see how much organic traffic you get. Make sure to analyze the visits coming from backlinks again. If more people are looking for information on your blog, you should be able to redirect them to your website.
Net Promoter Score
The net promoter score – NPS – is a good way to determine if your clients are satisfied or not with your product. With this metric, you will be calculating just how likely it is for a buying customer to recommend your product to a friend.
When you obtain your net promoter score, you should also leave some extra space for feedback. It is an opportunity to learn more about your clients and whether they have any insight for you or not.
Referral Traffic
During the process of improving your marketing efforts, you also need to determine exactly where your visitors are coming from. How many of your visitors are from organic searches such as a Google keyword search, and how many visitors are referred from other websites?
If you use guest posts as a way to gain followers, then this number is very relevant to you. To determine how much of your traffic is referred, take your total traffic and divide it by traffic coming from other sites. When you multiply that number by 100, you will get a ratio.
Customer Retention
According to data, while 44% of businesses look at customer acquisition, only about 18% pay attention to retention. This is bad, because if the customer is not satisfied with your product, then they will likely not make any future purchases from you.
This metric is very important because it helps you understand your clients more. This way, you can create better services and you will know how to market the product. You will be able to use this information for your next marketing campaign.
Email Marketing Performance
To this day, email remains one of the best ways to keep in touch with your leads. A good email marketing campaign will result in many people opening your emails. That being said, if the campaign was done poorly, then the emails will not be opened or will end up in spam.
To measure your email marketing performance, you need to look at various data such as your bounce rate, unsubscribe rate, open rate, forwards, or click-through rates. If you do not get much engagement through your emails, then it might be a sign to redo your strategy.
Return on Ad Spend
As a website manager, you probably spend a lot of money on ad campaigns. Ads are essential because they target your product to customers that may need it. However, for the ads to be successful, you need to see revenue from them.
To calculate the return on ad spend (ROAS), you take the revenue you received from that campaign, and then divide it by how much you spent on it. This will give you an average ratio of the returns.
Event Attendance
As a business owner, you will likely have an event to hold here and there. For example, you may have a restaurant planning a music event, or a gym planning a special fitness challenge. In that case, you will want to check your event attendance.
Tracking event attendance is important because it will tell you whether your marketing strategy is working or not. For instance, the event attendance can tell you how many of those that hit “maybe” have attended in the end.
Marketing Qualified Leads
A marketing qualified lead (MQL) is someone that has yet to purchase from you, but with the proper nurturing, can turn into a serious prospective buyer. This key indicator is important because it tells you how many people you bring in.
To calculate the marketing qualified lead, take out the new customers from a specific period. After that, take out the percentage of those that started as a lead from your marketing efforts. This will help tell you whether the campaign is successful or not.
Sales Qualified Leads
The marketing qualified leads and the sales qualified leads often go hand in hand. If the MQL is prepared and nurtured efficiently, there are high chances for it to become a sales qualified lead.
The SQL tells you when a prospective leader is ready to discuss with one of your agents and make a purchase from your business. This will suggest whether your marketing efforts are successful or not.
The Bottom Line
For your website to be successful, you need to check out various key performance indicators. By doing this constantly, you can determine if your current strategy is working or if you need to make any changes. We hope this article has helped you discover the best key performance indicators for you.
Author Bio: With more than 13 years of experience in the marketing field, Tiberiu Iavorenciuc, the CEO of EasyLinkStudio, has been one of the most active people in making SEO more accessible and easier to understand for the rest of the world.
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