Key Performance Indicator (KPI)

Key Performance Indicators (KPIs) are quantifiable metrics used by companies to evaluate the success of an employee, department, or activity. Marketers rely on KPIs to measure progress toward marketing objectives, ensuring alignment with broader business goals. Examples of KPIs include Customer Acquisition Cost (CAC), traffic sources for blogs, and views of the homepage. It’s crucial to select KPIs that accurately reflect the performance of both marketing efforts and overall business objectives.


An example of a Key Performance Indicator (KPI) could be the Customer Acquisition Cost (CAC) for an e-commerce business. This metric measures how much it costs on average to acquire a new customer. A lower CAC indicates more efficient marketing and sales processes, leading to better profitability and growth.