Key points at a glance
- Good marketing KPIs connect spend with leads, customers and revenue.
- CPL shows what a lead costs, CAC what a won customer costs.
- ROAS measures revenue per advertising euro, the conversion rate the share of people who take the next step.
- Only in relation to customer lifetime value does it become clear whether a campaign pays off.
Why the right metrics are decisive
Many marketing reports are full of numbers: impressions, followers, likes. These values show reach, but not whether marketing brings in money. Good KPIs (key performance indicators) answer a simple question: what did we spend, and what came out of it?
CTR: click-through rate
The CTR (click-through rate) shows how many of the people who see an ad or a post click on it. Formula: clicks divided by impressions times 100. A low CTR indicates that message, image or audience do not fit.
Conversion rate
The conversion rate shows how many visitors take the desired next step, such as sending an enquiry or booking a meeting. Formula: conversions divided by visitors times 100. It is the most important lever on your website and landing page.
CPL: cost per lead
The CPL (cost per lead) shows what an enquiry costs on average. Formula: ad spend divided by number of leads. It is important to look not only at the price but also at lead quality: cheap leads that never buy are expensive in the end.
CAC: cost per won customer
The CAC (customer acquisition cost) shows what a new customer costs in total. This includes ad spend, agency and tool costs as well as the effort in sales. Formula: all marketing and sales costs divided by the number of new customers in the same period.
ROAS: revenue per advertising euro
The ROAS (return on ad spend) shows how much revenue each advertising euro brings. Formula: revenue from ads divided by ad spend. A ROAS of 4 means: every euro of advertising generates four euros of revenue. Whether that is profitable depends on your margin.
CLV: the value of a customer over time
The CLV (customer lifetime value) estimates how much revenue or contribution margin a customer brings over the entire relationship. Only the ratio of CLV to CAC shows how much you can spend on winning a customer.
Which KPIs belong in a good report?
- Spend per channel.
- Leads and CPL per channel.
- Qualified leads and meetings.
- New customers and CAC.
- Revenue and ROAS.
- Development over time instead of individual snapshots.
Conclusion
Marketing KPIs are not an end in themselves. If you consistently connect spend with leads, customers and revenue, you quickly see which channels pay off and can shift budgets deliberately. For this, marketing and sales must see the same numbers, ideally in the CRM.
Frequently asked questions
AIMelanie Dincdemir
Marketing, digital business and business model development at Optivanta
This article is for general information only and does not constitute legal, tax or investment advice. It does not replace advice on your individual case. Despite careful research, we accept no liability for accuracy, completeness or timeliness; use is at your own risk. Articles bearing an author's name reflect that author's opinion. The provider of and party responsible for all content is Optivanta Solutions LLC. More in the imprint
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