How to Define Digital Marketing KPIs That Align with Your Business Goals

The addition of KPIs, Key Performance Indicators is vital to advancing your company in this new digital marketing world. The general purpose of KPIs is to improve performance strategically at your business; this allows the company to keep track of the positives and negatives within each industry or department. Without utilizing better business and marketing strategies, it can become complicated to complete a task and analyse the results. Before diving into KPIs, you should have a solid understanding of what type of KPIs you need and if you can utilize multiple. It is not wise to only pay attention to one kind. If you choose to focus on your quantitative information over your qualitative data, you could be analysing your numerical data without looking at the anecdotal feedback.

Operational KPIs

An Operations Key Performance Indicator is a measurement that helps companies see what operational strategies work and which ones don’t. Operational metrics are a discretely competitive way for companies to stay on top by using KPI dashboards to track efficiency in actual time. It is the operations department’s job to ensure the logistics are in order to improve company performance. 

KPIs allow the management team to create logical changes and decisions that are backed up by numbers. When the company has clearly defined objectives, it can align the goals with the KPIs they need.

How to Measure Marketing KPI Metrics

Measure Marketing KPI Metrics

The sales and marketing teams are two of the most critical groups in any business and industry. Without measuring marketing KPIs for your company, it can be difficult to make sales and keep people coming back. These teams need to ensure that marketing objectives line up perfectly with relevant KPIs and metrics.

First, you set the marketing objective for the members of the company to follow. Second, you set your KPI value so that you can track progress. Then from here, you will obtain a metrics value, which is essentially a performance number. You can use these objectives to create three different marketing models; Leads, Sales, and Traffic models.


Leads top the list for being one of the best choices for marketing KPIs, and they can be either online or offline. Most online leads come from customers visiting a website and filling out a form to enquire more information about the company. Leads from online bookings can be used to calculate the conversion rate. A conversion is any desired action that you want the user to take. They could be starting a new subscription, submitting an online form, downloading software, or purchasing through the company. The conversion rate is calculated by taking the number of conversions and dividing it by the total number of visitors. For example, if a site has 200 visitors and makes 20 sales, the conversion rate would be 20/200 = 10%.

click to book a demo version
Click to book a demo version


The more leads you can obtain through your website, the more chances you have to grow sales. The faster the team responds to a lead, the better opportunity they have at making the sale. So it is best to respond as quickly and confidently as possible because most businesses model their marketing objectives on the revenue they need to earn. Sales multiplied by the Average Order Value (AOV) will help you calculate projected and total revenue.

Average Order Value is a value that comes from dividing the amount of revenue earned in a period by the number of customers who ordered. This value will let you know how much customers are spending on each item and if most customers are buying more than one item at a time. Having multiple purchases through a single customer will help improve this number considerably.

Companies improve their average order value using cross-selling and upselling. Cross-selling is when a company recommends items online that are directly related to the item a customer buys. For example, this method is used on Amazon; whenever you search for an item, other products at the bottom of the page will complement your purchase item well. Upselling is when a company uses promotions to make you purchase the more expensive item.

How To Implement KPI in an Organization

If you are new to the business world, the subject of a business KPI implementation process can be scary and very intimidating, but with some simple analysis, you can be on your way to a growing business. However, before you do anything, you should figure out which area in your business you want to improve. There are many aspects of your company to focus on, such as return on ad spend (ROAS), upsell & cross-sell rates, business growth, employee retention, and financial performance.

After coming up with a focus area, you should implement digital marketing tactics like social media, email marketing, and SEO to improve brand awareness. Using these methods helps you to connect to people better.

How To Start a Digital Marketing KPI Program

After defining your KPIs, Your company’s many aspects, you should ask for input from your employees. Remember to utilize your KPI dashboard as a communication medium so you can stay connected to who the dashboard is for. Managers and executives have different expectations for the data being presented to them. 

Managers tend to gravitate towards operational dashboards, while an executive of the company might expect a reporting dashboard. The purpose of these conversations will be to save time spent on designing and refining the final prototype.

After sketching your design containing data, charts, and tables, run the prototype by the executives once again to ensure that the data correlates with the message that is trying to be conveyed. Once your design is approved, select your KPI dashboard software and gather your key data points. At this point in the process, take your time to make a spreadsheet and build data sources.

If all of this sounds difficult to you, do not worry, there are professionals available to help anyone who does not consider themselves tech-savvy. You want to ensure that your board is not creating more questions; effective dashboards should be as informative as possible and creative in appearance.

Before displaying your dashboard, you need to create a feedback session. Get the same stakeholders from before and take comments and concerns with a smile. Do not be discouraged if they tell you that you have more work to do; look at this as you are on the right track.

How To Monitor Digital Marketing KPI

There are innovative tools available to track your marketing KPIs. Using technology, you will have the ability to track your marketing KPIs. When you monitor your KPIs, there will be performance values available like the number of users and sessions, the average session duration, bounce rate, ratio of new to returning visitors. Measuring these values will show you if your company’s marketing efforts are paying off or if there is room for improvements.

After establishing your business goal, you should set a specific target and compare it to how you are currently doing. By comparing your present stance to your future goals, you will have a better understanding of the smaller steps you need to take to reach the big goal at hand. Your small goals should state how much you need to improve each month to accomplish the big goal.

As you progress in your KPI journey, you should constantly review improvements and declines. Ensure that you create suitable spaces between each review to have precise measurements in the KPI performance.

click to book a demo version
Click to book a demo version

Tools To Monitor Digital Marketing KPI

Using advanced tools to monitor your KPIs, manage accounts, and audit campaigns will help you receive the best results for your company.

General tools

Google Analytics is the most famous tool used for monitoring all of your metrics from one dashboard. The dashboard has 4 sections, which are:

  1. Audience – This helps you find out who your customers are and includes information such as location, demographics, retention, and device technology. You can use these metrics to interpret the impact of your marketing efforts on various user segments.
  2. Acquisition – This shows you how customers reach your website. In the Channels tab under All Traffic, you can delve into what channels (ads, organic traffic, social media, email, etc.) deliver the most traffic. 
  3. Behaviour – This explains what your customers do on your website. It will answer questions like “What pages do they visit?” and “How long do they stay?” Examining these metrics can help you understand the overall user experience and the effects it has on retention and engagement.
  4. Conversions – This tracks whether or not customers take the actions that you want them to take. Conversions usually involve defining funnels for important actions like purchases to see how well the site supports these actions over time.

Facebook Page Insights helps you identify how many people are visiting your post, which posts are the most popular, and shows you feedback from your page.

Email Marketing Tools like Constant Contact, ConvertKit, and MailChimp help you identify how well your campaigns for email marketing are doing in comparison.

Why not also look at Google Data Studio, it’s a wonderful free visualisation tool that allows you plug your data in and display it in a manner that is easy to read!

Mistakes To Be Avoided While Monitoring KPIs

One of the most significant mistakes people make in digital marketing is not setting any marketing KPIs. It is an excellent idea for tracking progress and seeing goals be accomplished. However, do not stop there. Some people tend to create primary goals and fail to monitor marketing KPI progress. The more detailed your plan is, the better. You want to ensure that your goals are easier to read so you can see why some marketing goals are not being accomplished.

It’s important to not become someone who creates a goal without tracking their progress. Keeping track is the only way to know if you are on the way to getting the results you want. How will you know if your business is successful if you are afraid to analyse the numbers? You can avoid future problems by staying away from these mistakes.

Sample Business Plan With Digital Marketing KPIs

What you are selling and who you are selling to is the most important thing to consider when creating a sample business plan.

For example, your company might have a goal of having more meetings to talk about sales, how to close deals efficiently, and how to create a larger sales pipeline.

An example of your company’s success metrics includes creating an increase in new sales conversions by 10% and increasing the sales pipeline by 5%, along with closing deals faster and at a higher amount. Content will be used for marketing, and sales will be used to build connections.

Defining KPIs is an essential first step for any marketing or sales initiative. However, unfortunately, it often gets overlooked. The key is to understand your business, your audience, and your goals and come up with ways to ensure you can achieve them without compromising on quality. Analysing website and marketing data starts with figuring out which metrics are important to your business. 

After that, you can use any of the tools mentioned earlier to bring them into a single receptacle on which you can begin your analysis. Prior to setting any new goals or implementing a new strategy, it is really important to take some time and consider whether you know what you should be looking for and how you define success or failure. This can help you lay down the foundation to success in reaching your goals.

Shelly Parker