What is KPI, why it is important and examples of how to define yours

If you still don’t know what KPI is, you are losing the chance to measure the performance of your marketing actions.

After all, I am talking about one of the main ways to analyze the results of a business.

It is a tool that provides accurate data on what is working well or badly in the company.

From what results, you can anticipate problems and avoid unnecessary damage.

But will it be difficult to define how many and which performance indicators are the most relevant?

Do not worry, because the main motivation of this article is to get rid of the complications.

Throughout the text you will see that the strategy does not hide any secrets.

It is enough to know well how your business works and the market in which you operate.

Although there is no guide to choosing the right KPIs, I do offer you a series of tips that you should always keep in mind.

What is KPI?

What is KPI

KPI is the acronym for the English term Key Performance Indicator. In Spanish it is known as the Key Performance Indicator.

It is a management tool used to measure the progress of a certain action or process.

The analysis can consider both an isolated action and a set of them.

Its purpose is to identify if the executions are being effective, so that the previously established objectives are met.

The tool is a real gem for managers.

By discovering what KPI is and how to use the indicator, it is possible to work with clear information during the development of your strategy.

Even in the business environment it serves to transmit the mission, vision and values ​​to collaborators located at lower levels within the hierarchy.

Why are KPIs important?


As I mentioned, communication with your team is made easier with KPIs.

Likewise, these allow the manager to clearly report how the company’s situation is.

Through KPIs, all employees are aware of what is actually happening.

It never hurts to remember that this condition of knowing is essential for them to commit to the aspirations of the company.

Therefore, the indicators serve to join forces based on the strategies planned for the future of the business.

This makes it possible for workers to understand how important their activities are to the success of the numbers.

They contribute so that they feel an effective part of the process.

By the way, I found out that in practice, a KPI is almost always a number or a percentage.

And that is why it is so important for decision making.

For example, imagine that you want to know how many pages a user saw on your blog or on your company site during their visit.

Obviously, you are going to identify a number, to tell you something, 5 pages per visit.

That can be a KPI.

Now the rejection rate of a page can be an example of a KPI given in percentage.

Suppose it is 70%.

If so, something is not working as it should be, high right?

Maybe it’s time to evaluate your content marketing strategies.

Do you notice how the analysis of KPIs plays an important role in the growth process of your business?

What is the difference between KPI and metric?

What is the difference between KPI and metric

You already understood what KPI is.

Is it the same as metrics?

This doubt is frequent, especially in entrepreneurs who are beginning to use them.

The interesting thing is that they have some similarities and differences at the same time.

Wasn’t it clear to you?

I’m going to explain it to you better.

As the two indicators are closely linked, it is necessary to understand the structure of each one so as not to make mistakes in the evaluation of a certain action or of your marketing campaigns.

The metric is the indicator that shows a certain user behavior on your site.

In most cases, it is not associated with any conversion goals.

Take a look at some examples of metrics most used in digital marketing:

  • Visits to the site web
  • Unique Visitors
  • Rejection rate

On the other hand, the KPI is an indicator that originates from the metrics themselves. They are created based on them.

However, unlike metrics, KPIs are always tied to a conversion goal.

What happens is that they try to mathematically explain the achievement of the objectives established in relation to the visitor on the site.

Look at some examples of KPIs:

  • Sales conversation rate
  • Time spent on site
  • Number of subscriptions to the Newsletter

In summary, while the metrics reflect the behavior of the visitors on the site, the KPIs measure the performance of the business as such.

Do you want me to give you an even shorter definition?

Metrics are information and KPIs are results.

Metrics are usually native indicators of web analytics tools, such as Google Analytics.

In turn, KPIs are key indicators defined by site managers to analyze the course of business.

And what if I told you that KPIs are not the same as metrics, but a metric can become a KPI?

I clarify it to you at this moment.

The metric is something that is going to be measured, but if for some reason, it brings a very important data for your strategy, it becomes a determining indicator.

Ideally, you should keep in mind that when creating the marketing plan, you choose the appropriate metrics and KPIs that you are going to use in your campaign.

These are the ones that will help you evaluate the course of each action, as well as the final result of the campaign.

How to define the KPIs of your project?

How to define the KPIs of your project

In the digital world, the flow of information is great and constant.

When developing marketing planning, knowing how to choose the indicators to check is essential.

But how to do it?

First of all, keep in mind that your main objectives are the basic guide when defining which KPIs to use.

Since it is the indicators that measure the path and performance of each of the purposes that you set out.

Therefore, if you choose the wrong indicators, you will still have the wrong data about performance.

It’s that simple and tragic.

But don’t despair.

I selected a number of characteristics that every good KPI should have.

Follow the tips to avoid mistakes, waste of time and effort in indicators that do not offer any benefit to your business.

  • Represent the business objectives as a whole: a good KPI needs to have a high degree of adaptation to your business, that is, it must show that the strategy is having results and that the main objective is being achieved.
  • Be relevant: KPIs must be relevant for what is proposed to be fulfilled. The likes, comments and shares seem important, but the truth, they are numbers that do not show any concrete results.
  • Facilitate important decision-making: Indicators should help make smart choices. So, make that data and information the basis for choosing the best path for your business.
  • Be based on reliable and measurable data: for everything to work properly, a good KPI will depend on being easily measured and analyzed.
  • Have periodicity: make sure to choose KPIs that can be measured periodically, favoring decision-making when necessary. Constant monitoring allows you to understand and examine the scenario, what works and what doesn’t.

Did you realize that there is no magic formula to define the KPIs of your business?

Taking these characteristics into consideration, you will be able to choose the best options according to your reality.

Stay away from vanity metrics

Stay away from vanity metrics

Number of followers/fans, likes, comments, among others, may seem like good numbers to show managers.

But they don’t represent much more than high numbers.

Depending on the branch of business, they are not as relevant as other metrics.

For example, the amount of likes is hardly going to help you make important decisions.

So, focus on real goals.

Try not to rely on vanity metrics to reveal your business scenario.

KPI types

KPI types

You will realize that there is a wide variety of indicators that can be important for your strategy.

That is completely normal.

It is worth remembering that some of them only make sense when they are supported by data or evidence.

The ideal is to define various types of indicators, according to the interests of those who analyze the results.

In this way, the process is more successful.

To help you on that journey, I separated the indicators into three main categories.

Here you go!

Primary KPIs

They are indicators directly monitored by those who run the business.

Its main purpose is to quickly demonstrate if the objectives are being fully met.

Therefore, they are also known as strategic KPIs.

In the case that you need to show that you are generating profit for the company, for example, the primary KPIs that you should observe are:

  • Conversion rate
  • Leads
  • Acquisition cost per lead (CPA)
  • Traffic
  • Total income
  • Income per purchase.

Secondary KPIs

Secondary KPIs are also called tactical indicators.

They are those that will be inspected by the managers of each department.

They need to show that the tests and the management of the strategies are on the right track.

This being the case, it is interesting to use indicators such as:

  • Cost per lead at each stage of the sales funnel
  • Newsletter subscribers
  • Blog subscribers
  • Recurring visits to the blog
  • Cost per visitor
  • Origin of traffic (organic, paid, social networks, direct, email and others)
  • Average price per transaction

It is important to keep in mind that the secondary KPIs are related to the primary ones.

They must even justify them, showing how those results are being achieved.

Practical KPIs

Finally, there are practical KPIs, also known as operational indicators, as they must be accompanied by specialists in each area.

Its objective is to provide more details on understanding the results of the primary and secondary indicators.

So the number of indicators that must be studied is greater.

More detailed data on user behavior, acquisition and characteristics needs to be tracked.

Let’s see some of them:

  • Page views
  • Pages / visit
  • Bounce rate
  • Better landing pages
  • Page rank
  • Most searched keywords (according to your business)
  • Most read / visited content
  • Traffic
  • Visitors (new versus returning)
  • Social interactions

Here’s a tip: Try to define what really matters to reach your overall marketing goal.

In addition, it ensures that as you go through the categories (primary, secondary and practical), you do the monitoring of the previous ones as well.

That is, if you are a marketing analyst, for example, you must follow up on all the selected indicators.

But if you are the director, it is interesting to monitor those who are going to bring more financial benefits to the business.

Examples of KPIs

Examples of KPIs

When they ask you what KPI is, you already have the answer.

But as an example always helps, I selected a few to finish once and for all with any questions you may have.

Digital marketing

Digital marketing has become a great ally for companies to increase their income and gain public recognition

For that reason, it is essential to monitor some of these KPIs:

  • Interest in your site/blog: number of unique visitors, number of returning visitors, average time spent browsing the site, rejection rate and most visited pages.
  • Origin of traffic: direct, organic, paid, from recommendations, social networks.
  • Performance of online campaigns: Cost per Click (CPC), Cost of Acquisition (CPA) and Click Rate (CTR).
  • Landing pages: conversion rate of the landing pages of your site.
  • Organic results: number of leads and customers converted through organic traffic, number of visitors from keywords related to your brand.

Email marketing

The email marketing is an excellent way to establish a more personal relationship with your leads and customers.

All of this helps to strengthen relations between the company and the public.

Therefore, when you shoot your emails, make sure to analyze the following:

  • Conversion rate
  • Click through rate (CTR)
  • Email open rate
  • Email registration rate
  • Rate of emails identified as spam
  • Rejection rate (hard bounce and soft bounce)
  • Delivery rate
  • Overall ROI

Social media

Having an active presence on the social networks most used by your audience is essential to keep the brand visible.

Marketing campaigns on social networks are an excellent way to disseminate the content produced and generate value with it.

They even contribute decisively to strengthen relationships and humanize communication between the company and consumers.

Take a good look at the following KPIs:

  • Interest: clicks, likes, shares, comments, brand mention, page views, active followers.
  • Scope: followers or fans, impressions, CTR and other information that refers to traffic.
  • Conversion: lead conversion rate, overall ROI, cost of customer acquisition (CPA).


Have you already noticed how most people use search mechanisms to get the answers to their doubts and solutions to their problems?

Then, investing time and effort applying good SEO practices is essential for your solution to appear in the first results.

Consequently, the organic traffic of your site will increase.

Make sure to also analyze:

  • Traffic: increase in organic traffic, increase in the number of pages that generate traffic, percentage in organic conversions, organic click-through rate (CTR), organic impressions.
  • Leads: percentage of inscriptions in the newsletter, conversion rate of visitors to leads, percentages of leads generated by the blog
  • Keywords directly related to the brand: percentage of mentions about the brand and traffic from branded keywords.
  • Link building: total number of links won, number of links from authority sites, number of links from relevant sites.


Increasing business income is a common goal of almost all businesses.

To see if your efforts are paying off, check:

  • Number of monthly sales
  • Number of monthly leads
  • New customer rate
  • Lead to customer conversion rate
  • Lead acquisition cost
  • Cost per conversion
  • Average ticket
  • Customer profitability

Start capturing leads with Klickpages today

Start capturing leads with Klickpages today

The task of conversing with your audience, being notorious and awakening their interest in what you offer, is not easy.

Fortunately, digital strategies make the challenge less complicated.

You do not use your site or blog to capture leads?

This is your great opportunity!

While you talk with your visitors through articles, or when you present them promotions, do not miss the chance to obtain their contact information that will allow you to promote closer and more productive dialogues.

It can be the invitation to subscribe to a newsletter, receive news by email, download an e-book or register for a free course.

No matter what the action is, do your best to create a great landing page, as it greatly increases the number of conversions.

And to accomplish that task, Klickpages is the ideal tool. Practical and easy to use.

There are only three basic steps to create yours

  1. Choose your model: know the high conversion alternatives proven by tests.
  2. Customize the page: edit the texts, colors and images, as well as hide the elements that are not useful.
  3. Publish: finally, you only need to publish your own domain, without additional hosting costs.

Make your campaigns start with full force!


KPI conclusion

You probably came to this article without knowing what KPI is or with doubts about how to use performance indicators in favor of your business.

Now you have valuable information to prepare a marketing strategy and propose that your performance be translated into numbers.

After you manage to overcome this stage, dedicate yourself to analyzing and implementing the possible corrections that you see necessary.

Do not forget to choose the indicators that are really significant for the business.

Stay away from vanity metrics.

I hope you come back to tell us about your experience and leave your comments here.

Count on Klickpages and their fantastic landing pages to achieve your goals.

Until next time!