What Are KPIs: Key Performance Indicators For Marketing Strategy

Key Performance Indicators

Key Performance Indicators

Every marketer has a strategic goal in mind for a particular marketing campaign, starting from finding a target audience, generating revenue, building a following, increasing brand awareness. But how do you measure this goal? And how do you monitor your success over time? Key Performance Indicator, commonly known as KPIs, is the benchmark for success or failure for any campaign. What are KPIs? Let’s review some key Performance indicators and how they develop your market strategy

Click Through Rate (CTR):

Click through rate is a measure of the number of people that click on an ad. You can obtain this number by dividing the percentage of people who view the ad known as an impression by the percentage of people who clicked the ad.


A conversion is a request you want people to complete, which includes making a purchase, clicking on an advertisement or filling out a form. This action is valuable to your business. For instance, if someone comes to the website and purchase a shirt, it is considered as a conversion because they have converted from a prospect to an actual customer.


Impressions tell the exact numbers of ads displayed to a customer, whether or not the ads are clicked or are in view, it is not taken to the account. In some cases, they are measured by CPM(cost per mile) here, miles represents 1,000 impressions. For instance, an ad having CPM of $2.50 means that the advertiser pays $2.50 every time the ads are seen 1,000 times

Page views:

Every time a user enters your web page, A times one visitor can rack up a number of different views, so businesses search for unique page view which logs the number of different users entering the site.

Return on Investment (ROI):

Return on Investment is the revenue generated by investing money into an aspect of a company’s campaign in relation to the cost of that investment. In other words, how much do you invest in your marketing skills compared to how much you are getting back?  ROI is used to compare a company’s profitability or to compare the efficiency of different investments.

Customer Retention Rate:

Customer Retention Rate refers to how many customers you have that still wants to be your customer and is a good reflection of how good your customer service is and how fast you can grow your business. Many subscription companies, like Netflix and Amazon Prime, look to calculate this because it is a clear indication that many customers are enjoying their services. It can be measured monthly, quarterly, or annually, that’s depending on your business Aims. To calculate your customer retention rate, there are three key points you need to know. They are;

  • customers at the end of a period (CE).
  • new customers acquired during that period (CN).
  • customers at the start of that period (CS).

 Churn (Customer Turnover Rate):

Churn, also known as Customer Turnover Rate, is a measure of customer attrition and can define as the loss of a customer or client. To calculate your customer turnover rate, you take all the customers you have lost in a certain amount of time, and divide it by the total number of customers you had at the beginning of that time. For instance,  if you had 400 customers at the beginning of the month and only 300 at the end of the month, the customer turnover rate would be:

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