17 digital marketing KPIs that really matter
It is easy to get caught up in vanity metrics, which may look impressive but fail to translate into meaningful results. These are the digital marketing KPIs worth tracking. Learn what they are, how to measure, and how to improve them.
Everyone knows that a sound marketing plan should be based on data, but picking which KPIs can be challenging.
A tracking system should include general KPI but also specific metrics for SEO, social media, paid media and email marketing.
Organic Search Traffic, follower growth rate and CPC are among the most relevant KPIs. Here’s how to measure and improve them.
Social media likes, page views, and followers are often seen as the gold standard of success. But here’s the hard truth: these metrics, while nice to boast about, don't necessarily reflect the true impact of your marketing efforts.
It's time to challenge that mindset and shift the focus to the digital marketing KPIs that really matter – the ones that help you track progress, understand customer behaviour, and most importantly, drive revenue. Discover what they are, how to measure, and how to improve them.
1. Customer Acquisition Cost
Customer Acquisition Cost (CAC) tells you exactly how much money you need to spend to gain a new customer. It includes all marketing and sales costs divided by the number of customers acquired in a specific time frame. If you're spending more than you're making, you need to think it over.
If CAC is too high and your margins are thin, you’re basically buying customers at a loss. It also helps you identify which channels are draining resources with little to show for it.
How to measure
CAC = Total marketing & sales costs / Number of new customers acquired
How to improve
Refine targeting. Stop advertising to everyone and focus on the right audience.
Optimize conversion funnels. Every extra step before conversion is an opportunity to lose a customer.
Leverage organic channels. Paid ads are great, but if they’re your only traffic source, you're moving in the wrong direction.
2. Customer Lifetime Value
Customer Lifetime Value (CLV) estimates how much revenue a single customer will generate during their entire relationship with your brand. A customer that buys once and disappears is not valuable. A customer that keeps coming back? That’s gold.
When your CLV is high, you can afford to invest more in acquiring new customers without tanking your profitability.
How to measure
CLV = Average purchase value x Purchase frequency x Customer lifespan
How to improve
Improve retention strategies. Reward loyalty, offer benefits, and give customers reasons to stay.
Upsell and cross-sell. Make sure customers know about other products or services that complement their purchase.
Personalization is key. The more relevant your marketing, the more likely customers are to keep engaging with your brand.
3. Return on Investment
Return on Investment is the ultimate metric that tells you whether your marketing is a smart investment or just an expensive guessing game. It measures how much revenue your campaigns generate compared to what you spend, ensuring every euro (or dollar) is working for you.
How to measure
ROI = (Net Profit/Total Digital Marketing Costs) x 100
Where Net Profit is the revenue generated from marketing efforts minus the total costs associated with those effort and Total Digital Marketing Costs represents all expenses related to digital marketing activities, including advertising spend, software tools, personnel salaries, and other related costs.
How to improve
Know where you stand by setting baseline metrics. This way, you can measure progress and identify areas to improve.
Check your campaign data regularly – what’s working, what’s not, and where can you tweak to get better results? A/B testing is your best friend here.
Use analytics tools to dive deep into customer behaviour, campaign performance, and market trends. Data-driven decisions are always better than gut feelings.
4. Conversion Rate
Your conversion rate tells you what percentage of visitors take a desired action on your site. That could be making a purchase, signing up for a newsletter, or booking a demo.
All the traffic in the world means nothing if no one is taking action. A high conversion rate means your messaging, offer, and user experience are working. A low conversion rate? Something’s broken.
How to measure
Conversion Rate = (Conversions / Total visitors) x 100
How to improve
A/B test like your revenue depends on it. Because it does.
Simplify the user journey. Cut unnecessary steps, make CTAs clearer, and reduce friction.
Optimize for mobile. If your mobile site frustrates users, you’re basically handing your customers over to the competition.
5. Organic search traffic
Search traffic represents the number of visitors who arrive at your website through unpaid search engine results - aka, organic traffic.
More search traffic means your website is actually being found – and, more importantly, it’s being found for the right reasons. When your site ranks well for valuable keywords, it boosts visibility and gets you in front of potential customers.
How to measure
To figure out if your SEO is actually working, use web analytics tools like Google Analytics. Track the number of organic sessions, the unique visitors, and where your traffic’s coming from.
How to improve
Ensure your title tags are clear, relevant, and include primary keywords to improve search visibility.
Write compelling and keyword-rich meta descriptions that encourage clicks from search results.
Use descriptive, keyword-friendly alt texts to improve accessibility and SEO performance.
Ensure your content is informative, engaging, and addresses user needs effectively. The search engines (and your visitors) will notice.
6. Keyword rankings
Keyword rankings are the positions your web pages hold in the search engine results pages (SERPs) when people search for specific terms. The higher your ranking, the better your chances of being found, and the more likely you are to attract organic traffic. The general rule is to aim for a spot in the top 10 of the SERPs. Those are the spots that actually get clicks.
How to improve
Use tools like Google Keyword Planner to identify the exact terms your audience is searching for.
Incorporate these search terms seamlessly into your website content, including blog posts, landing pages, and product descriptions.
Ensure your meta descriptions contain relevant keywords to improve visibility on search engine results pages.
Use keywords in H1, H2, and other headers to help search engines and users quickly understand the topic of your content.
7. Domain and page authority
Domain Authority (DA) and Page Authority (PA) are metrics that help predict how well a website or a page will rank on search engines. DA gives a score for the entire domain, while PA is all about the strength of individual pages. Both scores range from 1 to 100, with higher numbers being the ultimate goal for SEO rankings.
How to improve
Regularly refresh and expand your content to keep it relevant, valuable, and favoured by search engines. Old content can quickly lose its authority.
Improve site speed, mobile-friendliness, and security (SSL) to ensure search engines recognize your site as trustworthy
Strategically link between relevant pages on your site to distribute authority and improve user navigation.
8. Bounce rates
Bounce rate is a metric that tells you what percentage of visitors land on your site and then leave after only viewing a single page. This digital marketing KPI can vary by industry. Content-heavy sites, like blogs, tend to have higher bounce rates, as visitors often find what they need on a single page. E-commerce sites, on the other hand, aim for lower bounce rates to encourage users to explore products. Overall,up to 40% is excellent, up to 55% is average and beyond is higher than average (but may not be alarming depending on the site’s goal).
How to measure
Bounce Rate = Non-Engaged Visits / Total Visits x 100
How to improve
Slow websites make visitors hit the back button. Use tools like Google’s PageSpeed Insights to find and fix performance issues.
Well-placed calls to action encourage visitors to check out more pages, improving engagement and lowering bounce rates.
9. Social media engagement
These are among the most important Social Media KPIs. Likes represent affirmative reactions to your content, serving as a quick measure of approval and interest. Comments indicate a deeper level of engagement, reflecting that your content has sparked conversation or elicited a response from the audience. Shares demonstrate that your audience finds the content valuable enough to distribute it within their own networks, amplifying your reach and credibility.
Data shows that the media industry experiences an average engagement rate of 0.75% on Instagram and 0.12% on Facebook. In contrast, the NGO sector sees higher engagement, with averages of 1.07% on Instagram and 0.20% on Facebook.
How to measure
Engagement Rate = (Likes + Comments + Shares) / Total Followers x 100
How to improve
Develop content that is relevant, informative, and visually appealing to your target audience.
Pose questions, conduct polls, or prompt discussions to invite audience participation.
Share content created by your audience to build community and encourage others to contribute.
Analyse when your audience is most active and schedule posts during these peak times to maximize visibility.
Employ relevant hashtags to increase discoverability and reach a broader audience.
10. Follower Growth Rate
Follower Growth Rate measures the percentage increase in the number of followers on a social media account over a specific period. This metric provides insights into the effectiveness of your social media strategies in attracting and retaining followers. A steady or increasing growth rate indicates that your content resonates with your audience. Conversely, a declining growth rate may signal the need to reassess your content strategy or engagement tactics.
According to data from Q3 2024, the average weekly follower growth rates in the entertainment and media industry are 0.57% for Instagram, 0.47% for LinkedIn and 0.46% for X (Twitter). This KPI does not measure the quality of your followers or their level of engagement with your content. Therefore, it is recommended to analyse this KPI in conjunction with other performance indicators, such as engagement rate, to get a comprehensive understanding of your social media performance.
How to measure
Follower Growth Rate = (New Followers Gained During Period / Total Followers at Start of Period) x 100
How to improve
Regularly post engaging and valuable content that aligns with your brand and appeals to your target audience.
Respond to comments, messages, and mentions to build a community and encourage follower loyalty.
Use relevant hashtags and participate in trending topics to increase visibility.
Partner with influencers in your industry to reach a broader audience.
11. Cost-Per-Click (CPC)
Cost-Per-Click (CPC) is what you pay every time someone clicks on your online ad. A sky-high CPC could mean you're spending money on poorly targeted ads or bidding too aggressively, while a lower CPC usually signals that your ads are hitting a good spot with the right audience.
CPC varies across industries due to factors such as competition, keyword demand, and market dynamics. For instance, the legal industry often experiences higher CPCs, with averages exceeding $6.75 per click, while other sectors may see CPCs around $2 to $3.
How to measure
CPC = Total Advertising Cost / Number of Clicks
How to improve
Go for high-intent keywords that are more likely to convert.
Your ad copy needs to be irresistible. When you get more clicks, your click-through rate (CTR) improves, and CPC goes down.
If your landing pages are not optimized, visitors are bouncing, and so is your budget. Make them relevant and user-friendly to boost conversions.
Implement negative keywords to filter out irrelevant traffic and keep costs down.
Keep tabs on your competitors’ bids. If they're bidding too high, you can swoop in with more efficient targeting.
12. Click-Through Rate
Click-Through Rate (CTR) represents the percentage of users who click on an ad after viewing it. A higher CTR indicates that your ad is resonating with your target audience, leading to more traffic and potential conversions. It's also a key factor in determining your Quality Score in platforms like Google Ads, which can influence your ad's position and cost-per-click.
The average CTR is around 1.91% for search and 0.35% for display, though these figures can vary by industry. In most cases, a CTR of 3% is considered a solid benchmark, and anything higher indicates strong performance.
How to measure
CTR = (Number of Clicks / Number of Impressions) x 100
How to Improve
Write clear, concise, and engaging ad text that highlights the benefits of your product or service.
Ensure your ads are triggered by keywords that closely match user intent.
Direct users to landing pages that are relevant to the ad content and provide a seamless user experience.
Utilize ad extensions to provide additional information and increase the visibility of your ads.
Regularly test different ad variations to determine which elements resonate best with your audience.
13. Newsletter signup rate
Email is far from dead, but only if you track the right numbers to keep your audience engaged and converting. Your Signup Rate quantifies how persuasive your website really is. This digital marketing KPI tells you what percentage of visitors subscribe to your newsletter or mailing list. A high signup rate means your content and offers are appealing. On the other hand, a low one indicates that it’s time to rethink your approach.
On average, the newsletter signup rate is around 2%, meaning only 2% of website visitors subscribe to mailing lists. However, top-performing marketers achieve signup rates of approximately 4.77%, indicating that with optimized strategies, higher conversion rates are attainable.
How to measure
Signup Rate = (Number of New Subscribers / Total Number of Website Visitors) x 100
How to improve
Ensure your signup forms are user-friendly, prominently placed, and require minimal information to reduce friction in the signup process.
Offer valuable incentives such as exclusive content, discounts, or free resources to entice visitors to subscribe.
Craft persuasive and clear CTAs that communicate the benefits of subscribing, encouraging immediate action.
Regularly test different form designs, placements, and messaging to determine what resonates best with your audience.
Ensure your signup process is seamless across all devices, particularly mobile, as a significant portion of users access websites via smartphones.
14. Email marketing open rate
Open Rate is your first clue about whether your emails are being effective or heading straight for the void. This KPI tells you the percentage of recipients who actually open your email, giving you a clear read on whether your subject lines are irresistible or just background noise.
According to data from Mailchimp, the average open rate across all industries is approximately 35.63%. However, specific industries may experience higher or lower averages. For instance, the government sector has an average open rate of 40.55%, while the electronics industry averages around 26.98%.
How to measure
Open Rate = (Number of Emails Opened / Number of Delivered Emails) x 100
How to improve
Craft subject lines that intrigue. Get straight to the point but make it enticing. Personalization, curiosity, and urgency all help.
Segment your audience based on their interests and behaviours, so your emails actually feel relevant.
Analyse when your audience is most likely to check their inbox and send accordingly.
Remove inactive subscribers and invalid addresses. A smaller, engaged list is way better than a bigger but unresponsive one.
15. Email Click-Through Rate
In email marketing, the Click-Through Rate (CTR) measures the percentage of recipients who clicked on a link in your email – essentially, how many people took the next step after opening. A high open rate is great, but CTR is the real measure of engagement. It shows whether your content is compelling enough to drive action.
The average email CTR falls between 3% and 5% across industries. If you’re hitting that range, you’re in good shape. If you’re above 5%, you’re doing really well. Anything below 3% suggests you might need to rethink your strategy.
How to measure
CTR = Total Clicks / Total Delivered Emails x 100
How to improve
Make subject lines irresistible. If they don’t open the email, they can’t click. Spark curiosity while keeping it relevant.
Use subscriber data to tailor content, making your emails feel less generic and more valuable.
Don't bury the action. Make your call-to-action buttons bold, direct, and easy to spot.
Sending the right message to the right people increases the chances they’ll find it useful – and click.
Test different CTAs, layouts, images, and subject lines to see what actually drives engagement.
16. Email Bounce Rate
In email marketing, the bounce rate represents the percentage of emails that fail to reach recipients' inboxes. These delivery failures are categorized into two types: soft bounces, temporary issues preventing email delivery, such as a full inbox or server problems, or hard bounces, permanent delivery failures caused by invalid email addresses or non-existent domains.
A high bounce rate can damage your sender reputation. Email providers may start marking your messages as spam, which means fewer people will ever see your content.
Maintaining a rate below 2% is generally considered good practice. Rates between 2% and 5% may indicate issues that need attention, while rates above 5% are cause for concern and warrant immediate action.
How to measure
Bounce Rate = (Bounced Emails / Emails Sent) x 100
How to improve
Clean your email list regularly. Get rid of invalid or inactive emails to keep your list healthy.
Implement double opt-in and ask subscribers to confirm their email addresses to avoid hard bounces.
Optimize email content and size, so your emails won’t be too heavy or spammy. That’s a surefire way to trigger soft bounces.
Authenticate your emails. Use protocols like SPF, DKIM, and DMARC to show that your emails are the real deal.
Tailor content to specific groups, to reduce the chances that your emails get marked as spam.
17. Email unsubscribes
The unsubscribe rate shows what percentage of your recipients who opt out of receiving future emails from your brand. A high unsubscribe rate could mean your emails are irrelevant, sent too often, or not reaching the right audience.
According to recent data, the average unsubscribe rate across all industries is approximately 0.1%. However, it's important to consider industry-specific benchmarks, as acceptable rates can differ.
How to measure
Unsubscribe Rate = (Number of Unsubscribes / Total Number of Emails Delivered ) x 100
How to improve
Get specific with who gets what. Custom content for custom audiences keeps things relevant.
Find a balanced frequency so your subscribers actually look forward to your emails.
Give them content they actually want. No one unsubscribes when they're excited to see what's next in their inbox.
Use their name, recommend products based on past behaviour. Show them you know them.
Make unsubscribing easy. This may sound counterintuitive but offering an easy opt-out process builds trust and keeps the spam complaints down.
Drive real results with accurate digital marketing KPIs
If your current approach is more about tracking numbers that sound good than focusing on what truly drives growth, it’s time to make a change. The right digital marketing KPIs are the difference between marketing that generates results and marketing that simply wastes resources.
To fully leverage the power of KPIs, however, requires more than just knowledge of what to track. It requires a comprehensive understanding of your business goals, your audience, and how each marketing channel feeds into the broader objectives of the company. This holistic view enables you to design marketing strategies that are aligned with both short-term targets and long-term growth.
At Articulate, we bring together a complete set of services designed to address all aspects of your marketing needs. From crafting compelling content to managing multi-channel campaigns, our team helps you focus on strategies that are proven to generate tangible results. Get in touch.