Marketing KPIs, With the Math Shown.Marketing KPI and metrics glossary with formulas and examples

The share of your website visits that arrive from AI assistants such as ChatGPT, Perplexity, Gemini, and Copilot.

Example: A Fort Wayne accounting firm gets 4,000 visits in a month and 80 come from AI assistants. 80 ÷ 4,000 × 100 = 2%.

Why it matters: This channel is growing, so tracking it now gives you a baseline to measure against.

See also: Share of Voice, Organic Traffic Growth Rate

The average time your website was actively in focus on a visitor’s screen, as reported by Google Analytics 4.

Example: A Warsaw orthopedic clinic’s knee pain guide totals 50 hours (3,000 minutes) of engagement from 1,500 users. 3,000 ÷ 1,500 = 2 minutes average engagement time.

Why it matters: Longer engagement on key pages often signals content that answers real questions.

See also: Engagement Rate (Website), Bounce Rate

The average amount a customer spends per order or job.

Example: A South Bend boutique earns $18,000 from 300 orders in a month. $18,000 ÷ 300 = $60 average order value.

Why it matters: Bundles, add-ons, and free shipping thresholds raise AOV without new customers.

See also: Customer Lifetime Value (CLV), Repeat Purchase Rate

Where your pages typically appear in Google search results for a keyword or group of keywords, as reported in Google Search Console. Position 1 is the top.

Example: A Granger pizza shop’s page shows at position 2 for 300 impressions and position 4 for 100 impressions. ((2 × 300) + (4 × 100)) ÷ 400 = 2.5 average position.

Why it matters: Track positions for the searches that bring calls, not just the ones with the most volume.

See also: Search Click-Through Rate, Organic Traffic Growth Rate, Local Pack Visibility

In Google Analytics 4, the percentage of sessions that were not engaged. It is the opposite of engagement rate.

Example: A South Bend restaurant’s menu page has a 62% engagement rate, so its bounce rate is 100% − 62% = 38%. After compressing photos, engagement rises and bounce rate falls.

Why it matters: Check bounce rate by page. A contact page and a blog post naturally behave differently.

See also: Engagement Rate (Website), Average Engagement Time

The return on ad spend where your ads exactly cover their own cost. Any ROAS above this number adds profit.

Example: A Middlebury furniture showroom earns a 25% profit margin. 1 ÷ 0.25 = 4, so every $1 of ad spend needs $4 in sales to break even.

Why it matters: Set this number before a campaign starts so everyone knows what success looks like.

See also: Return on Ad Spend (ROAS), Return on Investment (ROI)

How many months it takes for a new customer to earn back what you spent to win them.

Example: An Elkhart gym spends $120 to win a member who brings in $40 of gross profit each month. $120 ÷ $40 = a 3-month payback period.

Why it matters: Shorter payback periods free up cash sooner to reinvest in growth.

See also: Customer Acquisition Cost (CAC), Customer Lifetime Value (CLV)

The percentage of customers who stop buying or cancel during a period. Churn is the flip side of retention.

Example: A Granger fitness studio starts the month with 250 members and 10 cancel. 10 ÷ 250 × 100 = 4% monthly churn.

Why it matters: Watch which customers leave and when. Patterns point to the fix.

See also: Customer Retention Rate, Customer Lifetime Value (CLV)

The percentage of delivered emails or texts where at least one link was clicked.

Example: A Nappanee furniture store delivers 1,200 emails and 48 people click. 48 ÷ 1,200 × 100 = 4% click rate.

Why it matters: One clear call to action per message usually earns the most clicks.

See also: Click-to-Open Rate (CTOR), Open Rate, Revenue per Email

The percentage of people who click after seeing your ad, search listing, or email link.

Example: A Niles dentist’s ad appears 1,000 times and earns 50 clicks. 50 ÷ 1,000 × 100 = 5% CTR.

Why it matters: A strong CTR means your headline and offer match what people are looking for.

See also: Impressions, Cost Per Click (CPC), Conversion Rate

The percentage of people who opened an email and then clicked a link. It measures how well the content inside the email performs.

Example: A Goshen garden center’s email gets 300 opens and 45 clicks. 45 ÷ 300 × 100 = 15% CTOR.

Why it matters: Use CTOR to compare email designs and offers fairly.

See also: Click Rate, Open Rate

Compares what a customer is worth with what it cost to win them. It shows whether your growth is healthy and where you have room to invest more.

Example: A Mishawaka dental practice has a patient lifetime value of $3,600 and a CAC of $300. $3,600 ÷ $300 = 12, a 12:1 ratio, so the practice can confidently invest more in attracting patients.

Why it matters: A ratio around 3:1 is a common rule of thumb. Higher ratios mean you can grow faster with confidence.

See also: Customer Lifetime Value (CLV), Customer Acquisition Cost (CAC)

The percentage of visitors who take the action you want, such as calling, booking, or buying.

Example: A Middlebury furniture showroom receives 400 website visitors in a month and 20 of them book a visit. 20 ÷ 400 × 100 = 5% conversion rate.

Why it matters: Small improvements here multiply the value of every visitor you already have.

See also: Landing Page Conversion Rate, Click-Through Rate (CTR), Bounce Rate

The ad spend needed to win one conversion, such as a sale, booking, or signed customer. CPA focuses on ad spend for a campaign, while CAC includes every cost.

Example: A Mishawaka remodeler spends $500 on ads and signs 10 new customers. $500 ÷ 10 = $50 CPA.

Why it matters: Set a target CPA based on what a customer is worth, and let it guide bids and budgets.

See also: Customer Acquisition Cost (CAC), Cost Per Lead (CPL), Return on Ad Spend (ROAS)

The average amount you pay each time someone clicks your ad.

Example: A Goshen plumber spends $650 on search ads and receives 100 clicks. $650 ÷ 100 = $6.50 CPC.

Why it matters: Higher quality ads and landing pages often earn lower click costs on Google.

See also: Click-Through Rate (CTR), Cost Per Lead (CPL), Cost Per Thousand Impressions (CPM)

What each new inquiry costs you, such as a call, form, or booking request.

Example: A Warsaw home builder spends $600 on ads in one month and receives 20 inquiries. $600 ÷ 20 = $30 CPL.

Why it matters: Compare CPL with your close rate to see what each new customer really costs.

See also: Lead-to-Customer Rate (Close Rate), Cost Per Acquisition (CPA), Customer Acquisition Cost (CAC)

The price you pay for every 1,000 times your ad appears. CPM is common for awareness campaigns on social media, display, and streaming.

Example: A Goshen boutique spends $200 and its ad appears 40,000 times. $200 ÷ 40,000 × 1,000 = $5 CPM.

Why it matters: Use CPM to compare how affordably different platforms reach your audience.

See also: Impressions, Reach, Cost Per Click (CPC)

The total cost to win one new customer, including ads, marketing tools, agency fees, and sales time. CAC is broader than cost per acquisition because it counts every cost, not just ad spend.

Example: A Warsaw landscaping company spends $4,500 in a quarter on ads, software, and marketing help, and signs 30 new customers. $4,500 ÷ 30 = $150 CAC.

Why it matters: Pair CAC with customer lifetime value to see how much you can afford to spend to grow.

See also: Cost Per Acquisition (CPA), Customer Lifetime Value (CLV), CLV to CAC Ratio, CAC Payback Period

The total revenue one customer brings your business across the whole relationship. CLV tells you how much a new customer is truly worth.

Example: A Middlebury lawn care customer pays $150 per visit, books 12 visits a year, and stays 5 years. $150 × 12 × 5 = $9,000 lifetime value.

Why it matters: Multiply CLV by your profit margin to see lifetime profit, the number to compare with CAC.

See also: Customer Acquisition Cost (CAC), CLV to CAC Ratio, Customer Retention Rate, Average Order Value (AOV)

The percentage of existing customers who stay with you over a period. Keeping customers usually costs less than finding new ones.

Example: A Goshen auto shop starts the year with 400 customers, gains 120 new ones, and ends with 460. (460 − 120) ÷ 400 × 100 = 85% retention.

Why it matters: Email, SMS reminders, and great service all raise retention.

See also: Churn Rate, Customer Lifetime Value (CLV), Repeat Purchase Rate

The percentage of emails or texts that reached the recipient’s inbox or phone without bouncing or failing.

Example: A Granger med spa sends 2,000 emails and 1,960 are delivered. 1,960 ÷ 2,000 × 100 = 98% delivery rate.

Why it matters: Clean lists and proper email authentication keep delivery rates high.

See also: Email Bounce Rate, Open Rate, Spam Complaint Rate

The percentage of sent emails that could not be delivered. Hard bounces come from invalid addresses and soft bounces from temporary problems such as full inboxes.

Example: A South Bend nonprofit sends 3,000 emails and 45 bounce. 45 ÷ 3,000 × 100 = 1.5% bounce rate.

Why it matters: Remove hard bounces right away to protect your sender reputation.

See also: Delivery Rate, Spam Complaint Rate

The percentage of people who interacted with your post through likes, comments, shares, or saves, compared with how many people saw it.

Example: A Michigan City boutique’s reel reaches 2,400 people and earns 120 interactions. 120 ÷ 2,400 × 100 = 5% engagement rate.

Why it matters: Some platforms divide by impressions or followers instead, so compare numbers using the same method.

See also: Reach, Follower Growth Rate, Engagement Rate (Website)

In Google Analytics 4, the percentage of sessions that were engaged. GA4 counts a session as engaged when it lasts longer than 10 seconds, includes a key event, or has at least two page views.

Example: A Goshen law firm’s site has 1,000 sessions and 620 are engaged. 620 ÷ 1,000 × 100 = 62% engagement rate.

Why it matters: Clear headlines, fast pages, and helpful next steps raise engagement.

See also: Bounce Rate, Average Engagement Time, Conversion Rate

How quickly your social following is growing over a period.

Example: An Elkhart bakery starts the month with 2,000 Instagram followers and gains 150. 150 ÷ 2,000 × 100 = 7.5% growth.

Why it matters: Steady growth from local followers matters more than a big one-time spike.

See also: Engagement Rate (Social), Reach

The average number of times one person sees your ad.

Example: An ad shown 6,000 times to 2,000 people in Elkhart County has a frequency of 6,000 ÷ 2,000 = 3.

Why it matters: Moderate frequency builds familiarity. When results dip as frequency climbs, refresh the creative.

See also: Reach, Impressions

The number of times your ad, post, or listing appears on a screen. One person can create several impressions.

Example: A Mishawaka dentist’s search ad appears 10,000 times in one month. That total is 10,000 impressions.

Why it matters: Impressions measure visibility. Pair them with clicks and conversions to see results.

See also: Reach, Click-Through Rate (CTR), Cost Per Thousand Impressions (CPM), Impression Share

The percentage of available impressions your ads actually received. It shows how much more of the market you could reach.

Example: A Middlebury furniture showroom’s ad appeared 4,000 times out of about 10,000 possible. 4,000 ÷ 10,000 × 100 = 40% impression share.

Why it matters: Budget and ad rank both affect impression share, and Google Ads reports which one is holding you back.

See also: Impressions, Click-Through Rate (CTR)

The percentage of visitors to a specific landing page who complete its goal, such as a form or call.

Example: A LaGrange County dentist’s whitening offer page gets 500 visits from ads and 40 bookings. 40 ÷ 500 × 100 = 8%.

Why it matters: One clear offer and one clear button usually convert best.

See also: Conversion Rate, Cost Per Lead (CPL)

The percentage of leads that become paying customers. It shows how well your follow-up and sales process turn interest into revenue.

Example: A Plymouth roofing company receives 60 estimate requests in a month and signs 15 jobs. 15 ÷ 60 × 100 = 25% close rate.

Why it matters: Fast follow-up and clear quotes are two of the quickest ways to raise close rate.

See also: Cost Per Lead (CPL), Win Rate, MQL to SQL Conversion Rate

How fast your email or SMS subscriber list is growing after accounting for people who leave.

Example: A South Bend coffee shop starts the month with 1,000 subscribers, gains 80, and loses 20. (80 − 20) ÷ 1,000 × 100 = 6% growth.

Why it matters: In-store sign-up offers and website forms are steady growth sources for local businesses.

See also: Unsubscribe Rate, Delivery Rate

How often your business appears in the Google map results, often called the Local Pack, across the searches and neighborhoods you care about. Grid-based rank trackers measure it by checking results from many points on a map.

Example: A Goshen HVAC company checks a 25-point grid around town and appears in the top 3 at 15 points. 15 ÷ 25 × 100 = 60% visibility.

Why it matters: Reviews, profile completeness, and nearby relevance all move this number.

See also: Average Position, Review Rating Average, Review Velocity

The share of marketing qualified leads (people who showed interest) that sales accepts as sales qualified leads (people ready for a sales conversation).

Example: An Elkhart manufacturer gets 80 marketing qualified leads from a trade guide download, and sales qualifies 20 of them. 20 ÷ 80 × 100 = 25%.

Why it matters: A rising rate means marketing and sales agree on what a good lead looks like.

See also: Lead-to-Customer Rate (Close Rate), Win Rate

The percentage of delivered emails that were opened. Privacy features such as Apple Mail Privacy Protection can count opens automatically, so treat open rate as a directional signal.

Example: A Granger fitness studio delivers a newsletter to 500 subscribers and 140 open it. 140 ÷ 500 × 100 = 28% open rate.

Why it matters: Clicks and conversions tell a more reliable story than opens alone.

See also: Click Rate, Click-to-Open Rate (CTOR), Delivery Rate

How much your unpaid search traffic grew from one period to the next.

Example: An Elkhart roofer’s organic visits rise from 800 in March to 1,000 in April. (1,000 − 800) ÷ 800 × 100 = 25% growth.

Why it matters: Compare the same months year over year to account for seasonal swings.

See also: Average Position, Search Click-Through Rate

The expected value of open deals, adjusted by how likely each one is to close. It turns your sales pipeline into a realistic forecast.

Example: A Goshen sign company has a $10,000 deal at 50% and a $6,000 deal at 25%. ($10,000 × 0.5) + ($6,000 × 0.25) = $6,500 weighted pipeline.

Why it matters: Update probabilities as deals move stages so the forecast stays honest.

See also: Win Rate, Sales Cycle Length

The number of unique people who saw your content. Reach counts each person once, while impressions count every view.

Example: A Michigan City boutique’s post appears on 3,000 screens but belongs to 2,000 different people. Reach is 2,000 and impressions are 3,000.

Why it matters: Growing reach means new people are discovering your business.

See also: Impressions, Frequency, Engagement Rate (Social)

The percentage of customers who buy from you more than once. It measures loyalty and how well your follow-up works.

Example: A Nappanee bakery has 800 customers this year, and 320 of them ordered more than once. 320 ÷ 800 × 100 = 40% repeat purchase rate.

Why it matters: Loyalty offers, reminders, and email series lift this number.

See also: Customer Retention Rate, Average Order Value (AOV)

The revenue you earn for every dollar you spend on ads. ROAS shows how hard your ad budget is working.

Example: An Elkhart RV supplier spends $2,000 on ads and generates $8,000 in sales. $8,000 ÷ $2,000 = a ROAS of 4, or $4 back for every $1 spent.

Why it matters: Compare ROAS with your break-even ROAS to see whether ads are adding profit.

See also: Break-Even ROAS, Return on Investment (ROI), Cost Per Acquisition (CPA)

How much profit an investment returns compared with what it cost. ROI is the clearest way to judge whether marketing is paying for itself.

Example: A Niles remodeler spends $1,000 on marketing and earns $4,000 in new business from it. ($4,000 − $1,000) ÷ $1,000 × 100 = 300% ROI.

Why it matters: Use profit, not revenue, as the gain when you can. It shows what you actually keep.

See also: Return on Marketing Investment (ROMI), Return on Ad Spend (ROAS), Customer Acquisition Cost (CAC)

ROI measured for marketing alone. It compares the gross profit your marketing brings in with what the marketing cost, including fees and tools.

Example: A Goshen HVAC company spends $3,000 in a month on ads, software, and agency fees. Those campaigns bring in $9,000 of gross profit. ($9,000 − $3,000) ÷ $3,000 × 100 = 200% ROMI.

Why it matters: Counting every marketing cost gives you an honest number to compare channels and months.

See also: Return on Investment (ROI), Return on Ad Spend (ROAS)

The average revenue each delivered email produced. It turns email results into dollars.

Example: A Goshen boutique’s holiday email earns $2,400 from 4,000 delivered emails. $2,400 ÷ 4,000 = $0.60 per email.

Why it matters: Compare this across campaigns to find your most valuable message types.

See also: Click Rate, Return on Investment (ROI)

Your average star rating across reviews on a platform such as Google.

Example: A Middlebury cafe has 40 reviews totaling 188 stars. 188 ÷ 40 = 4.7 average rating.

Why it matters: Respond to every review. Thoughtful replies build trust with future customers.

See also: Review Velocity, Local Pack Visibility

How many new reviews your business earns in a set period. A steady flow shows customers and search engines that you are active and trusted.

Example: A Mishawaka auto shop earns 36 new Google reviews in 6 months. 36 ÷ 6 = 6 reviews per month.

Why it matters: Asking right after a great experience is the simplest way to keep reviews coming.

See also: Review Rating Average, Local Pack Visibility

The average number of days between first contact and a closed sale.

Example: A Mishawaka commercial cleaner closes 5 contracts that took 20, 25, 30, 35, and 40 days. 150 ÷ 5 = a 30-day average sales cycle.

Why it matters: Knowing your cycle helps you plan cash flow and time campaigns ahead of busy seasons.

See also: Win Rate, Pipeline Value (Weighted)

The percentage of people who click your page after seeing it in unpaid search results, as reported by Google Search Console.

Example: A Mishawaka dentist’s cleaning page earns 120 clicks from 3,000 search impressions. 120 ÷ 3,000 × 100 = 4%.

Why it matters: Sharper title tags and meta descriptions often lift search CTR.

See also: Average Position, Click-Through Rate (CTR)

Your share of the attention in your market compared with competitors. It can be measured in search visibility, ad impressions, social mentions, or AI answers.

Example: When 20 AI answers about “best Elkhart plumber” are checked, a plumbing company appears in 6. 6 ÷ 20 × 100 = 30% AI share of voice.

Why it matters: Pick one measurement method and track it consistently over time.

See also: Impression Share, Local Pack Visibility

Website visits that come from social media platforms. It shows whether your posts move people from scrolling to your site.

Example: A Goshen boutique’s website gets 2,000 visits in a month and 300 come from Facebook and Instagram. 300 ÷ 2,000 × 100 = 15% from social.

Why it matters: Add UTM parameters to social links for the clearest reporting.

See also: Engagement Rate (Social), Conversion Rate

The percentage of recipients who mark your email as spam. Gmail’s sender guidelines ask bulk senders to keep this below 0.3%, and lower is better.

Example: A Mishawaka retailer delivers 10,000 emails and receives 5 complaints. 5 ÷ 10,000 × 100 = 0.05%.

Why it matters: Clear opt-ins and an easy unsubscribe link protect your inbox placement.

See also: Unsubscribe Rate, Delivery Rate

The percentage of recipients who opted out after a message. For texts, this is often called the opt-out rate, measured from STOP replies.

Example: An Elkhart boutique delivers 2,500 emails and 10 people unsubscribe. 10 ÷ 2,500 × 100 = 0.4%.

Why it matters: Relevant, well-timed messages keep this number low and your list healthy.

See also: Spam Complaint Rate, Delivery Rate

The percentage of people who watch your video ad long enough for the platform to count a view.

Example: A South Bend fitness studio’s YouTube ad gets 8,000 impressions and 2,000 views. 2,000 ÷ 8,000 × 100 = 25% view rate.

Why it matters: A strong first three seconds lifts view rate on every platform.

See also: Impressions, Engagement Rate (Social)

The percentage of decided deals that you win. It measures how competitive your offer and sales process are.

Example: A Warsaw home builder wins 9 projects and loses 6 in a quarter. 9 ÷ (9 + 6) × 100 = 60% win rate.

Why it matters: Track why you win and lose. The answers sharpen your messaging.

See also: Lead-to-Customer Rate (Close Rate), Sales Cycle Length, Pipeline Value (Weighted)