2 Core Digital Marketing KPIs That Are Crucial for Your Business

If you’ve ever stepped foot in to the marketing industry, you’ve surely heard about key performance indicators (KPIs) and how important they are for businesses. They’re essentially metrics that help organisations monitor their functionality against their business goals and objectives. Many marketers obtain the gist of it, however, many have a problem in understanding which metrics actually matter and so are worth tracking adequately.

Digital Marketing KPIs are crucial for businesses because they are necessary in driving desired outcomes and performance. However, it’s very important that marketers judge and determine which KPIs are worth concentrating on in order to avoid wasting resources.

Marketers get access to scores of quantitative data that may become time-consuming and overwhelming to precisely analyse. Just a few data factors are important in accurately signalling the contribution of advertising to the development of the business.

Listed below are two important KPIs your team must consider to effectively evaluate your advertising performance and how exactly to calculate them.

Customer Lifetime Value

Far too frequently, the worthiness of a client is only attributed simply by calculating the income driven by their preliminary order. However, first-time clients may become repeat purchasers and deliver extra value by referring their peers to your business or composing positive reviews.

Businesses have to consider the projected net worth of the partnership with the customer, which is where the importance of calculating customer lifetime value comes in.Blue 37 Digital Marketing KPIs That Are Crucial for Your Business

Customer lifetime value (CLV) is the prediction of the net profit and value a business will derive from a customer throughout the entirety of their relationship, from start to finish.

A sophisticated marketing team will value the importance of recognising CLV as a KPI, set up systems to follow a customer over time, and report on their lifetime value. You can additionally drive CLV by lead nurturing, driving brand loyalty, and building long-lasting relationships with your customers.

Here is a simple formula to calculate customer lifetime value (CLV):

(annual profit contribution per customer) x (average number of years they remain a customer) – (initial cost of customer acquisition)

Cost Per Lead/Customer

How much of your marketing budget does your business allocate toward generating one new customer? Determining your cost per lead/customer (CPL/CPC) is essential in accurately calculating other Digital Marketing KPIs and ultimately ROI.

Similar to CPL, cost per acquisition (CPA) and cost per click (CPC) are complex numbers that require the combination of technology and experience in analysing data.

If your conversion costs as much or more than your customer lifetime value, you know there needs to be improvement.

Here is the formula to calculate cost per lead (CPL) in its most simple form:

total marketing spend / total new leads = cost per lead

Additionally, here’s how to calculate cost per acquisition (CPA):

total cost / total customers acquired = cost per acquisition


While the most valuable Digital Marketing KPIs will vary between different companies and industries, there are some universal KPIs your marketing team can’t afford to neglect. If your marketing team isn’t evaluating CPL and CPA to measure your company’s performance, you are missing out on important metrics.

Our team are on hand today, to discuss your digital marketing needs.  Call now to see how Blue 37 can help take your business to the next level.

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