The 10 Essential Marketing and Sales KPIs Every Business Should Track (With Formulas and Examples)
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What Are Marketing and Sales KPIs and Why Are They Critical for Business Growth?
KPIs (Key Performance Indicators) are measurable values that show how effectively your marketing and sales efforts are achieving business goals. In today’s data-driven environment, tracking the right KPIs is essential for optimizing performance, improving ROI, and driving long-term growth.
Related terms: marketing performance metrics, sales KPIs, digital marketing analytics, conversion tracking, campaign optimization, sales funnel metrics.
Complete Guide: The Top 10 Marketing and Sales KPIs to Track
Click Through Rate (CTR)
Formula: (Clicks / Impressions) x 100
CTR measures the percentage of users who click on a link (like a CTA button) after seeing it. A high CTR indicates that your message is relevant and compelling.
Why it matters:
- Helps evaluate ad copy, email subject lines, and landing page effectiveness.
- Influences Google Ads performance via Quality Score.
Customer Conversion Rate (CCR)
Formula: (Conversions / Landing Page Visits) x 100
This metric tells you how many visitors are converting into customers. It helps you assess the effectiveness of your sales funnel.
Tip: Use clear CTAs, social proof, and optimized landing pages to improve conversions.
Customer Acquisition Cost (CAC)
Formula: Total Sales & Marketing Spend / Number of New Customers
CAC reveals how much it costs to acquire a single customer. It’s critical for understanding profitability and investment efficiency.
Related keywords: acquisition cost, cost per lead, marketing ROI, budget optimization.
Average Revenue Per Account (ARPA)
Formula: Monthly Recurring Revenue (MRR) / Total Customers
ARPA measures how much revenue you earn per customer. It helps you evaluate the value of different customer segments.
Monthly Recurring Revenue (MRR)
Formula: ARPA x Total Customers
MRR is a foundational metric in subscription and SaaS models. It tracks predictable revenue and helps with forecasting.
Churn Rate
Formula: (Lost Customers / Total Customers) x 100
Churn shows how many customers you’re losing over time. A high churn rate could signal dissatisfaction or poor retention.
Benchmark: A healthy annual churn rate is typically between 5% and 7%.
Customer Lifetime Value (LTV)
Formula: (ARPA x Gross Margin) / Churn Rate
LTV estimates how much total revenue a customer generates during their relationship with your company.
Common search terms: lifetime value, LTV calculator, customer value marketing.
LTV to CAC Ratio
Formula: LTV / CAC
This ratio compares the long-term value of a customer to the cost of acquiring them. A ratio above 3 is considered strong.
Customer Retention Rate (CRR)
Formula: [(Customers End of Period - New Customers) / Customers at Start of Period] x 100
CRR tells you how well you’re retaining existing customers, which is usually more cost-effective than acquiring new ones.
Net Promoter Score (NPS)
Formula: (Promoters - Detractors) / Total Respondents x 100
NPS gauges customer satisfaction and loyalty by asking how likely they are to recommend your brand to others.
Why Should You Track These KPIs in Your Marketing Strategy?
- Align actions with measurable goals.
- Identify friction points in your funnel.
- Justify marketing spend with data.
- Make better, faster decisions backed by real-time insights.
- Optimize customer journeys and boost retention.
Download the Free PDF Guide on KPIs
Want to have this information at your fingertips? Download our free guide to the top 10 marketing and sales KPIs and access formulas, examples, and expert tips to take your performance to the next level.