How to choose the right KPI for Digital Marketing?



Key performance indicators or KPIs are quantifiable measures that assist a business review its performance and tracking the results. There are a lot of metrics that define the success of a digital marketing campaign, but KPIs are the exclusively selected metrics that best display the investment yield for a specific project.

A Digital marketing agency selects both long-term and short-term KPIs for the overall analysis of their efforts. A long-term KPI, that best aligns with the ultimate goal of the business, helps in integrating all the departmental efforts and, short-term KPI assists in analyzing the efforts of a specific campaign that is run under a holistic digital marketing strategy.


Why should digital marketers set KPIs?

KPIs give a SMART approach, i.e. Specific, Measurable, Attainable, Relevant, and Time-Bound, to your digital marketing campaign. Defining KPIs for campaigns assists the business in ensuring that its operational efforts and monetary investments are reaping maximum benefits. Some other benefits of setting accurate KPIs for your digital marketing campaigns include: 

  • KPIs justify the performance of digital marketing experts in front of stakeholders such as investors, clients, and even employees. 
  • They help in identifying the wins and loopholes in the campaign which assists in devising more rewarding and fruitful future strategies. 
  • Analyzing the KPIs diligently also helps in becoming aware of hidden opportunities and foreseeable threats, which helps in bringing about proactive measures. 

Now that we are well aware of the importance of setting KPIs for your digital marketing campaigns, it is equally important to understand which KPIs. to go for. This brings us to the next segment which is:


How to choose the right KPI for Digital Marketing? 

Because KPIs are key elements that define the success or failure of your campaign, it is imperative to select them carefully. Keep in mind the following 5 tips while creating a list of KPIs for your next digital marketing project.


Narrow down your list of metrics

Not all metrics are KPIs. Metrics are an array of measures, and KPIs are the specific ones that you select. So, we can say that the list of metrics is much broader and KPIs are specific. For example, a metric of your social media brand awareness campaign can be increased follower count, but a more SMART KPI will be a specific number of impressions and engagement rate. 


Set relevant expectations

The most prominent feature of a KPI is that it is more easily measurable in terms of the expectations of the outcome. A generic metric will be the increased traffic rate to your website which has no boundaries to it. The more the traffic rate, the better it is, but a KPI will be much more defined. For example, a defined KPI for your next SEO campaign can be a 15% traffic rate increase, month-on-month. 


Align the KPIs to digital channels

Different digital channels call for different action plans and measures. For example, the KPIs for an email marketing campaign would be delivery rate, open rate and click-through rate, whereas the relevant KPIs for the pay-per-click campaign would be, impressions, cost-per-acquisition and conversion rate. Therefore, it is crucial to align your KPIs to your digital channels.


Analyze industry benchmarks

Your KPIs will differ based on the industry your business model falls in. By analyzing the industry benchmarks, you can choose digital marketing KPIs based on what is relevant in your industry, and also keep abreast of what your competitors are choosing. For example, the relevant KPIs for an E-commerce business would be conversion rate, abandoned cart rates and customer lifetime value, whereas the KPIs for a digital campaign run for a local service-based business would be, lead generation from Google my Business and footfall in the physical store.


Tailor KPIs to the business life cycle

Every business has a life cycle – starting from the startup stage moving up to expansion. Your KPIs must be tailored to the life stage of your business. An accurate KPI can be a major motivator for you and your digital marketing team, but an inaccurate one can lead to a major plummet in the zeal to work. Being a startup, your primary digital KPIs. might surround improved digital visibility and new customer acquisition but, if you are a mature business then your primary KPI might be digital reputation management and customer retention rate.



Selecting the right KPI for your business is crucial as it gives direction to your digital marketing efforts. With diligent and consistent work, SMART KPIs are easier to reach, boosting the morale of both you and your team, given they are strategically selected. 

If you are seeking professional assistance to achieve your digital marketing goals and define the best-suited KPIs for your campaigns, then let us be your guiding light. #ARM Worldwide is an award-winning digital marketing agency that is here to support you at every step of your digital journey.


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