Marketing Marketing Key Performance Indicator Terms Key Performance Indicator A key performance indicator (KPI) is a measurable value that shows how effectively an individual, team or organisation is achieving a specific objective. KPIs are used across industries to track progress, identify trends, and guide decision-making. In digital marketing and communications, common KPIs include metrics like conversion rate, customer acquisition cost, email open rate, return on ad spend and website engagement. Choosing the right KPIs ensures that everyone is aligned on what success looks like. Effective KPIs are specific, relevant, achievable, and time-bound. For example, a nonprofit might track the number of monthly donors or volunteer sign-ups, while a B2B company may focus on marketing qualified leads or customer retention. KPIs should connect to broader business or mission goals, helping teams prioritise actions that drive meaningful outcomes. Tools such as dashboards, analytics platforms and scorecards make it easier to monitor KPI performance in real time. Reviewing KPIs regularly helps organisations stay agile and results-driven. If a KPI is not being met, it may signal a need to adjust tactics, reallocate resources or revisit assumptions. Strong KPI tracking also supports transparency and accountability, allowing stakeholders to see what is working and where improvements are needed. Whether you are running campaigns, managing a website or measuring program impact, KPIs provide the foundation for data-informed strategy and continuous improvement.