Dictionary
What is a KPI?
Lead the actions and ensure that the direction is clear and sensible.
KPI (Key Performance Indicator) is a key metric that shows whether progress is being made towards the main objective. Select 1-3 KPIs per campaign/channel, track them on a weekly basis, and make decisions based on data – not feelings.
Definition and Purpose
A KPI is a precisely defined metric that is directly linked to a goal: lead, purchase, reservation, demo, repeat order… A good KPI guides daily decisions: should we continue, stop, or scale? Avoid a list with ten "nice" numbers – most are just supporting metrics.
In short: if the KPI improves, the business progresses.
How to Choose a KPI (Quick Model)
Select a goal → select 1–3 KPIs:
Lead Acquisition (B2B/local):
CPL (Cost per Lead), CVR (conversion rate), SQL-% / lead qualityE-commerce:
ROAS or preferably POAS (contributory), CVR, AOV (average order value)Brand / Reach / Video:
CTR, View rate/Retention, Engagement (comments, shares)
Rule of Thumb: one main goal → max 3 KPIs. Other data supports understanding but does not guide the decision.
Formulas and a short example
CPL = Cost / Leads
CPA = Cost / Completed conversions
ROAS = Revenue / Cost
CVR = Conversions / Visits × 100 %
Example: Budget €2,000, leads 50, sales €18,000
CPL = 2,000 / 50 = €40
ROAS = 18,000 / 2,000 = 9.0
Interpretation: CPL is on track, ROAS indicates scalability – if the margin holds.
7 Steps to Implementation
Define the main objective. Lead, purchase, reservation or demo. One at a time.
Choose your KPIs. For example, CPL + CVR (lead) or POAS + CVR (eCom).
Set up measurement correctly. GA4 + GTM, main events and micro conversions.
Agree on UTM policy. Consistent
source/medium/campaign– reports remain coherent.Set limits. For example, “CPL ≤ 45 €”, “POAS ≥ 2.5”, “CVR ≥ 3 %”.
Report weekly. Show trends over a 4–8 week window, not individual spikes.
Act on the data. Cut the weak, develop the middle, scale the winners by +10–20 %.
Typical Mistakes
Everything is measured, nothing is decided. KPI without limits is decoration.
KPI does not link to the objective. Impressions do not indicate sales.
Measurement is broken. Duplicate conversions, incorrect value/currency, missing
value.Reported by channel, not by objective. Brand beautifies the figures, generics are hidden.
No testing. Without change, numbers do not move: hook, targeting, landing, CTA.
FAQ
How many KPIs should I have?
Keep it to 1–3 per objective. Other figures are supporting metrics.
Can KPIs vary by channel?
Yes, but they must lead to the same main objective (e.g. lead → CPL, CVR, SQL-%).
Do I need ROAS for lead acquisition?
Not mandatory. In leads, track CPL + quality + close rate. ROAS/POAS is useful if leads convert to actual sales.
How often should I report?
Weekly is the basic rhythm. With large data, you can glance every 3–4 days, but decisions are based on weekly trends.
What should I do first if the KPI isn’t moving?
Change one significant thing at a time: hook/creative, targeting/keywords, landing page title + CTA + form length.
