What is an example of a marketing KPI?

The conversion rate of leads to customers is a valuable marketing KPI because it directly measures the effectiveness of marketing efforts in turning potential customers into actual buyers. This metric provides insights into the sales process and helps businesses assess how well their marketing strategies are performing. A high conversion rate indicates that the marketing campaigns resonate with the target audience and successfully persuade them to make a purchase.

In contrast, while total revenue, social media followers, and advertising spend are important metrics for assessing overall business performance, they do not inherently gauge the effectiveness of marketing efforts the way that conversion rates do. Total revenue reflects financial outcomes rather than marketing processes, social media followers measure audience engagement but do not necessarily translate to sales, and advertising spend indicates investment but does not capture success or return on investment. Therefore, the conversion rate stands out as a KPI that specifically links marketing activities to customer acquisition.