How to create key performance indicators for marketing
🔑 Key takeaways:
🎯 Good KPIs tie directly to well-defined, measurable outcomes.
🛠 Choosing the right metrics keeps you focused and prevents scope creep.
👑 Each KPI should be specific, time-bound, and rooted in past performance.
✏️ Writing good KPIs starts with defining the outcome, not the task.
If you want to help your clients succeed in marketing, guesswork isn’t enough. When you’re creating social campaigns, writing content, or managing ads, you need clear ways to measure your results. That’s where key performance indicators (KPIs) have a considerable impact.
KPIs aren’t just business lingo; they let you prove your value and show your clients you can help them achieve their goals. I’m here to break down everything you need to know to use KPIs for better marketing outcomes. By the end of this post, you’ll learn how to set, track, and choose the right KPIs for any client project. I’ll walk you through the process using one of my clients so you can see exactly how it works in practice.
What are KPIs and why do they matter?
Key performance indicators (KPIs) are measurable metrics that track the effectiveness of your marketing efforts in achieving specific goals. Common marketing KPIs include conversion rates, website traffic, email open rates, and cost per lead. They matter because they help you focus on what’s working, spot areas for improvement, and demonstrate the value of your work. By tracking the right KPIs, you can make smarter decisions and drive better results for your business or clients.
Let’s say you’re running social campaigns for a boutique skincare business. A KPI like “increase Instagram engagement rate by 20% in three months” provides a specific goal that you can measure on a weekly basis.
Why should you care about marketing KPIs? Here’s what they do for you:
- They prove the value of your work. You help your clients see real, tangible outcomes.
- They add structure. You stay focused on what matters, rather than getting lost in distractions.
- They prevent scope creep. Everyone stays organized around well-defined priorities.
Once you understand KPIs, you might wonder how to pick the right ones. Here’s how I do it for my clients.
Selecting the right KPIs for marketing
Not all key performance indicators are equal. You need to find what matters most for your current goals, your client’s priorities, and the audience segments you want to reach. Let’s use a SaaS client as an example.
1. Align KPIs with business goals
Every KPI should link directly to your client’s business goals. For my client, the goal was to increase online sales by 30% within six months. I broke that down into actionable indicators of marketing success.
For example, email marketing might focus on increasing conversions, while social media could aim to drive more visits to product pages.
Example KPIs for a SaaS client:
- Email campaign conversion rate.
- Website traffic generated by Instagram ads.
- Average order value increases following a promotional campaign.
⛑ Tip: Limit yourself to 3-5 high-priority KPIs per project. You’ll stay focused and less overwhelmed.
2. Choose quantifiable metrics
Marketing key performance indicators require specific numerical data. Avoid vague goals, such as “increase brand awareness.” Instead, be specific, like “grow website traffic by 20% month-over-month through blog content.” This way, you always know if you’re on track.
For my SaaS client, here’s the difference:
- Not measurable: “Make Instagram posts more appealing.”
- Measurable KPI: “Achieve a 10% weekly increase in Instagram post engagement (likes, comments, shares) over eight weeks.”
3. Set a specific target and timeline
Each distribution channel has its optimal KPIs. If you’re running Google Ads, examine click-through rate (CTR) or cost-per-click (CPC). For influencer campaigns, you might track reach or affiliate sales.
For my clients’ paid ad strategies, an effective KPI was to “maintain a CPC below $2 for branded searches on Google.”
But choosing a KPI is only part of the equation. To ensure your metrics support real business goals, you need to set them up correctly. Here’s the process I use to set marketing KPIs that reflect outcomes clients care about.
How to set KPIs for marketing goals in 4 steps
If you’re trying to figure out how to set marketing KPIs, start by focusing on results, rather than tasks. Marketing KPIs help you measure success in a way that’s specific, trackable, and aligned with your client’s goals. This four-step process works whether you’re tracking email performance, ad spend, or organic content. Each step helps you clarify your focus and choose metrics that reflect progress.
1. Define the outcome your marketing KPI will measure
The first step in setting a KPI is identifying the outcome you want to influence. In marketing, this may involve increasing traffic, generating leads, or improving retention. Don’t confuse the tactic with the result. You’re not measuring blog posts. Instead, you’re measuring what you want the blog posts to achieve.
Example KPI outcome: Instead of “publish blog posts,” the real outcome might be “increase organic traffic to the blog.”
2. Select KPIs to measure that outcome
Once you know what outcome you’re aiming for, select a KPI that reflects progress toward that goal. Effective marketing KPIs reflect behavior or business value, rather than vanity metrics. You want something that tells you whether your work is making a difference.
Example marketing KPI: “Weekly blog sessions from organic search traffic.”
3. Set a specific target and timeline
Key performance indicators are measurable and time-bound. Add a specific number goal and a deadline so it’s clear what success looks like and when you should reach it. This helps you stay accountable and spot problems early.
Example: “Grow blog sessions from 800 to 1,200 per week in 60 days.”
4. Compare your KPI against past performance
Before finalizing a marketing KPI, verify it against historical data to make sure it’s realistic. Ask yourself: Is this a stretch, or is it achievable given our past performance? You want KPIs that challenge you, but not ones that set you up to fail.
Example: If traffic increased by 300 sessions in the previous two months, aiming for 400 in the next two months may be a stretch goal, but a good one.
How to track KPIs
Setting KPIs is only the beginning. To turn those indicators into real progress, you need to track them, analyze what’s working, and adjust as you go.
1. Leverage the right tools
The right tools make your life easier. Here’s what I use to evaluate KPIs:
- Google Analytics for website traffic, conversions, and bounce rates.
- Social media insights on platforms like Instagram and LinkedIn to monitor engagement and reach.
- Email marketing platforms like Mailchimp or ConvertKit for open and click rates.
For a SaaS client, I set up:
- Google Analytics for overall traffic and conversion rates.
- Instagram Insights for tracking engagement.
- Klaviyo to watch email sales and list growth.
2. Schedule regular check-ins
You should check your progress regularly. I recommend conducting weekly reviews for fast-paced campaigns (such as ads or social media) and monthly reviews for larger projects, like SEO strategies.
If you notice that your client’s ads are generating clicks but not sales, a quick check-in allows you to pivot before wasting time or budget.
3. Look for trends
KPIs tell a story that extends beyond the spreadsheets. Maybe your client’s YouTube engagement drops, but website visits and purchases increase. That’s still a win! Always look at the bigger picture so you can identify what’s truly driving results.
Marketing KPI case study
Here’s how I use KPIs to guide my decisions as a freelancer. Suppose your client is concerned about weak online sales, despite healthy site traffic. Instead of guessing, you let your KPIs guide the way.
Set KPIs:
- Increase website conversion from 2% to 4% in three months.
- Reduce cart abandonment rate from 60% to 30%.
- Grow the email subscriber list from 10,000 to 15,000 users.
Implement strategies:
- Focus on redesigning the checkout process to hit your conversion KPI.
- Launch retargeting email campaigns to reduce cart abandonment.
- Offer a downloadable “Style Trends Guide” to grow your email list.
Track outcomes:
- Your data indicate that website conversion rates increase, but cart abandonment rates remain high. So, you tweak the retargeting emails and let the KPIs show where to double down.
- By putting KPIs front and center, you don’t just work harder; you work smarter. You consistently deliver results that your client values.
Other goal-setting frameworks: SMART and OKRs
While KPIs are a go-to for tracking marketing impact, they’re not the only tool in your kit. Let’s talk about a couple of other frameworks, SMART goals and OKRs, and how you can use them alongside KPIs to get even better results for your clients.
SMART goals
You’ve probably heard of SMART goals. They make sure every target you set is Specific, Measurable, Achievable, Relevant, and Time-bound. For example, if I’m working with a SaaS client who wants to increase leads, a SMART goal might look like: “Generate 100 qualified demo sign-ups from the new landing page in 60 days by running targeted Facebook ads.” This goal is well defined, data-driven, realistic, aligned with business priorities, and has a deadline.
OKRs (objectives and key results)
OKRs are another framework that works exceptionally well when you’re juggling bigger-picture objectives. An OKR begins with an ambitious goal (the objective), which you then break down into key results used to measure progress. Let’s say I’m helping a deal website client expand their audience.
Here’s how that might look:
- Objective: Establish our site as a go-to destination for daily deals.
- Key Result 1: Grow newsletter signups by 40% in the next quarter.
- Key Result 2: Boost average time on site by 25%.
- Key Result 3: Secure partnerships with five new brands.
OKRs encourage you to think bigger and measure multiple components of success simultaneously. They’re broader than SMART goals but offer a tight feedback loop on progress.
Comparing SMART goals, KPIs, and OKRs
Here’s a side-by-side on how the same project might get set up under each model:
Framework | Definition | Example |
SMART Goal | Sets a specific, measurable target with a clear deadline. | “Add 2,000 new email subscribers in 90 days through Facebook and pop-up website promos.” |
KPI | Tracks key metrics tied to performance and optimization. | Track new subscriber rate, conversion on signup forms, and open rates for the welcome sequence. |
OKR | Defines a bigger-picture objective, then breaks it down into measurable outcomes. | Objective: Become the top resource for seasonal shopping deals. Key Results: – Increase email subscribers by 2,000 – Get a 35% average open rate for the welcome series – Launch partnerships with three local influencers |
By mixing and matching these goal-setting methodologies, you can establish precise targets, monitor meaningful progress, and connect daily tasks to broader business objectives. I use all three with my clients, picking the right tool for the right challenge.
Get started with marketing KPIs today
KPIs are your secret weapon for driving outcomes that matter. When you align measurable metrics with client goals, track them faithfully, and adapt as needed, you build credibility and make a tangible difference.
Ready to put this into practice? Pick your next client project, write down the top three
KPIs to measure success, and start tracking.
Your clients will thank you, and you’ll feel confident that every move you make supports what matters.
FAQs about KPIs for marketing
What makes a KPI effective in a marketing strategy?
An effective marketing KPI is specific, measurable, and directly tied to a business outcome, such as leads, sales, or engagement. It should reflect something you can influence through your work and track over time. The best KPIs help you stay focused, make data-driven decisions, and clearly show your impact. For example, “increase email open rate by 15% in 60 days” is more actionable than a vague goal like “improve email performance.”
How many KPIs should I track in a marketing campaign?
It’s best to track 3–5 key performance indicators per campaign. Too many KPIs can dilute your focus and make it harder to take action based on the data. Select metrics that align with your primary goals—such as lead generation, conversions, or retention—and monitor them regularly to stay on track. The goal is clarity, not complexity.
What are the most important KPIs for freelance marketers?
Important KPIs for freelance marketers depend on your services and client goals. Common examples include conversion rate, cost per lead, email engagement, organic traffic growth, and social media reach. Focus on KPIs that tie directly to outcomes your clients care about, such as revenue or engagement. Always match the metric to the platform and project type.
How do I know if I’ve set the right KPI for a marketing project?
A good KPI is specific, measurable, tied to a clear outcome, and realistic based on past performance. If your KPI gives you a way to track progress and adapt your strategy, it’s probably a good fit. Review previous campaigns or industry benchmarks to ensure your targets are realistic. And don’t be afraid to revise KPIs mid-project if your priorities shift.
