ग्रोथ मार्केटिंग
Growth Marketing 101: What Is It & How Does It Work? - MNTN
Growth marketing aims to drive sustainable business growth by optimizing every stage of the customer journey, from brand awareness to retention.
metrics and KPIs
With clear <anchor>metrics and KPIs</anchor>, performance marketing allows for precise budget allocation and quick adjustments to maximize results. The key difference lies in its intense focus on short-term goals, whereas growth marketing takes a more holistic, long-term approach to the entire customer journey.
15 Digital Marketing Metrics & KPIs to Measure Performance - MNTN
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# 15 Digital Marketing Metrics & KPIs to Measure Performance

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As a marketer, you want to build as much awareness for your product as possible. But how do you measure performance on the road toward achieving that goal? Or the effectiveness of your marketing spend and sales campaigns?

This article presents you with 15 **digital marketing metrics and KPIs** you can use to measure performance in your advertising campaigns.

## What Are Digital Marketing KPIs?

Digital Marketing KPIs (Key Performance Indicators) are measurable values that demonstrate how effectively a company achieves its digital marketing objectives. These metrics help marketers track performance across a wide variety of marketing initiatives.

## Importance of Tracking Marketing Metrics

Tracking marketing metrics is crucial for understanding the effectiveness of campaigns and identifying areas for improvement. It’s crucial to stay on top of your KPIs to ensure all your endeavors are paying off. Here are a few you may be aware of, and a few you may not.

## 1\. Brand Awareness

[Brand awareness](https://mountain.com/blog/brand-awareness/) refers to how well-acquainted consumers are with your brand and its values. A big part of marketing aims to increase brand awareness and create positive associations. But understandably, this can feel like a slightly nebulous concept.

### How is Brand Awareness Measured?

When measuring brand awareness, two key metrics are tracked: unaided awareness, which gauges consumer knowledge of a brand without prompts, and aided awareness, which measures recognition when the brand is mentioned. Both are crucial but require different approaches; unaided awareness is less prone to bias and can be reliably measured using digital tools.

Customer surveys, though traditional for measuring aided awareness, can introduce bias. Tools like Google Trends and social listening platforms offer more reliable data by tracking search volumes and social media mentions, respectively, to gauge brand appeal and engagement over time.

## 2\. Net Promoter Score (NPS)

Net Promoter Score (NPS) is a metric used to gauge customer loyalty and satisfaction by measuring the likelihood of customers to recommend a company’s products or services to others. It provides insights into overall customer sentiment and potential business growth. Companies use NPS to identify their most loyal customers and address areas needing improvement.

### How is NPS Measured?

NPS is measured by asking customers to rate, on a scale of 0 to 10, how likely they are to recommend the company to others. Respondents are categorized as Promoters (9-10), Passives (7-8), or Detractors (0-6). The score is calculated by subtracting the percentage of Detractors from the percentage of Promoters.

- The formula is: **NPS = % Promoters – % Detractors**

For example, a tech company surveys its customers and finds that 50% are Promoters, 30% are Passives, and 20% are Detractors. Using the formula, the company’s NPS is calculated as 30, indicating a positive level of customer loyalty and satisfaction.

## 3\. Click-Through Rate (CTR)

Click-Through Rate (CTR) is a metric that measures the percentage of people who click on an ad or link compared to the number of people who view it. It indicates the effectiveness of an ad in generating interest and engagement.

### How is CTR Calculated?

CTR is calculated by dividing the number of clicks on an ad by the number of times the ad is shown (impressions), then multiplying by 100 to get a percentage.

- The formula is: **CTR = (Clicks / Impressions) \* 100**

For instance, if an email campaign is viewed by 5,000 people and receives 250 clicks, the CTR would be 5%, showing the ad’s success in drawing user attention and prompting action.

## 4\. Cost-Per-Click (CPC)

Cost-Per-Click (CPC) is a metric used in online advertising to measure the cost incurred for each click on an ad. It helps advertisers understand the financial efficiency of their campaigns by tracking spending against user engagement.

### How is CPC Calculated?

CPC is calculated by dividing the total cost of an advertising campaign by the number of clicks the ad receives.

- The formula is: **CPC = Total Cost / Number of Clicks**

For example, if a business spends $300 on an ad campaign that generates 600 clicks, the CPC is $0.50, indicating how much each click costs on average.

## 5\. Conversion Rate (CVR)

[Conversion Rate (CVR)](https://mountain.com/blog/conversion-rate/) is a metric that indicates the percentage of users who complete a desired action, such as making a purchase, out of the total number of visitors. It helps measure the effectiveness of marketing campaigns and website performance in driving specific goals.

### How is CVR Calculated?

CVR is calculated by dividing the number of conversions by the total number of visitors and multiplying by 100 to get a percentage.

- The formula is: **CVR = (Conversions / Total Visitors) \* 100**

For example, if an e-commerce site has 2,000 visitors and 50 of them make a purchase, the CVR would be 2.5%, indicating how well the site converts visitors into customers.

## 6\. Return on Investment (ROI)

[Return on Investment (ROI)](https://mountain.com/blog/return-on-investment/) is a metric used to evaluate the profitability of an investment by comparing the gain or loss relative to the initial amount invested. It helps businesses determine the efficiency of their investments and make informed financial decisions.

### How is ROI Calculated?

ROI is calculated by dividing the net profit from an investment by the initial cost of the investment, then multiplying by 100 to get a percentage.

- The formula is: **ROI = (Net Profit / Cost of Investment) \* 100**

For example, if a company invests $1,000 in a marketing campaign and generates $1,500 in net profit, the ROI is 50%, indicating the campaign’s profitability.

## 7\. Return on Ad Spend (ROAS)

[Return on Ad Spend (ROAS)](https://mountain.com/blog/return-on-ad-spend/) is a metric used to measure the revenue generated for every dollar spent on advertising. It helps businesses evaluate the effectiveness of their advertising campaigns in driving sales and revenue.

### How is ROAS Calculated?

ROAS is calculated by dividing the revenue generated from ads by the cost of the ads.

- The formula is: **ROAS = Revenue from Ads / Cost of Ads**

For example, if an online retailer spends $500 on a digital ad campaign and earns $2,500 in revenue from it, the ROAS would be 5. This means that for every dollar spent on advertising, the retailer earns five dollars in return.

## 8\. Cost Per Acquisition (CPA)

[Cost Per Acquisition (CPA)](https://mountain.com/blog/cost-per-acquisition/) is a metric that measures the cost incurred to acquire a new customer through a marketing campaign. It helps businesses determine the financial efficiency of their marketing efforts in attracting new customers.

### How is CPA Calculated?

CPA is calculated by dividing the total cost of a marketing campaign by the number of new customers acquired.

- The formula is: **CPA = Total Marketing Cost / Number of New Customers**

For example, if a company spends $2,000 on a campaign and acquires 100 new customers, the CPA would be $20. This indicates that each new customer costs the company $20, helping evaluate the cost-effectiveness of the campaign.

## 9\. Customer Acquisition Cost (CAC)

Customer Acquisition Cost (CAC) is a metric that represents the total cost a business incurs to acquire a new customer. It includes expenses related to marketing, sales, and other activities aimed at attracting customers.

### How is CAC Calculated?

CAC is calculated by dividing the total marketing and sales expenses by the number of new customers acquired within a specific period.

- The formula is: **CAC = Total Marketing and Sales Expenses / Number of New Customers**

For example, if a company spends $10,000 on marketing and sales in a month and acquires 200 new customers, the CAC would be $50.

## 10\. Customer Lifetime Value (CLV)

[Customer Lifetime Value (CLV)](https://mountain.com/blog/customer-lifetime-value/) is a metric that estimates the total revenue a business can expect from a single customer account throughout the entire business relationship. It helps businesses understand the long-term value of their customer base and guides strategies for customer retention and acquisition.

### How is CLV Calculated?

CLV is calculated by multiplying the average purchase value, the purchase frequency (which equals the average customer value), and the average customer lifespan.

- The formula is: **CLV = Average Customer Lifetime Span \* Average Customer Value**

For example, if a customer spends an average of $50 per purchase, makes 5 purchases per year, and remains a customer for 3 years, the CLV would be $750.

## 11\. Cost Per Lead (CPL)

[Cost Per Lead (CPL)](https://mountain.com/blog/cost-per-lead/) is a metric that measures the expense incurred for generating a lead through a marketing campaign. It helps businesses understand the cost efficiency of their lead generation efforts.

### How is CPL Calculated?

CPL is calculated by dividing the total marketing cost by the number of leads generated.

- The formula is: **CPL = Total Marketing Cost / Number of Leads**

For instance, if a company spends $5,000 on a marketing campaign and generates 200 leads, the CPL would be $25.

## 12\. Marketing Qualified Lead (MQL)

[Marketing Qualified Leads (MQLs)](https://mountain.com/blog/marketing-qualified-leads/) are potential customers who have shown interest in a company’s products or services through marketing efforts and are more likely to become customers. These leads have met specific criteria indicating they are a good fit for further sales outreach.

### How are MQLs Calculated?

MQLs are calculated by identifying leads that meet predefined criteria, such as engagement with marketing content, downloading resources, or subscribing to newsletters. The criteria are typically set by the marketing and sales teams based on historical data and lead-scoring models. Once a lead meets these criteria, they are classified as an MQL and passed on to the sales team for further qualification.

## 13\. Sales Qualified Lead (SQL)

[Sales Qualified Leads (SQLs)](https://mountain.com/blog/sales-qualified-leads/) are leads that have been vetted and qualified by the sales team as having a higher likelihood of becoming customers. These leads have progressed beyond the initial marketing engagement and are ready for direct sales interactions.

### How are SQLs Calculated?

SQLs are calculated by evaluating MQLs against specific sales criteria, such as budget, authority, need, and timeline (BANT). The sales team assesses these factors during initial interactions or discovery calls. Leads that meet these criteria and demonstrate a genuine interest in purchasing are classified as SQLs and moved further along the sales pipeline.

## 14\. Sales Accepted Lead (SAL)

[Sales Accepted Leads (SALs)](https://mountain.com/blog/sales-accepted-leads/) are leads that the sales team has reviewed and accepted as being ready for direct sales efforts. These leads have passed the initial marketing and sales qualification stages and are considered viable opportunities for conversion, but aren’t quite SQLs (yet).

### How are SALs Calculated?

SALs are calculated by the sales team reviewing MQLs and formally accepting them as ready for further sales engagement. This involves a process where the sales team evaluates the lead’s fit and readiness based on predefined acceptance criteria. Leads that meet these criteria are marked as SALs and are actively pursued by the sales team to convert them into paying customers.

## 15\. Customer Retention Rate

Customer Retention Rate is a metric that measures the percentage of customers a business retains over a specific period. It reflects the company’s ability to keep customers engaged and loyal to its products or services.

### How is Retention Rate Calculated?

Customer Retention Rate is calculated by subtracting the number of new customers acquired during a period from the total number of customers at the end of the period, dividing by the number of customers at the start, and then multiplying by 100.

- The formula is: **Customer Retention Rate = \[(End Customers – New Customers) / Start Customers\] \* 100**

For example, if a company starts with 1,000 customers, acquires 200 new customers, and ends with 1,100 customers, the retention rate is 90%. This shows the effectiveness of the company’s retention strategies.

## Performance Marketing Metrics for Connected TV

If you seek expert support in measuring your marketing performance, MNTN Performance TV can help you gain actionable insights from Connected TV (CTV) campaigns. This comprehensive platform enables you to launch self-managed OTT advertising campaigns, target specific audience groups, and measure every aspect of your [CTV advertising](https://mountain.com/blog/connected-tv-advertising/) efforts, allowing you to drive measurable conversions, revenue, site visits, and more.

## Digital Marketing Metrics & KPIs: Final Thoughts

With an ocean of ad content out there, it’s more important than ever to reach your audience with your [performance marketing](https://mountain.com/blog/performance-marketing/) efforts. Using the right **digital marketing KPIs** is a big part of following up on your campaign to ensure it’s a success.

Contact us today for more information about how MNTN and Performance TV can help take your CTV marketing to the next level.

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Welcome! SteelHouse is officially MNTN.

If you’re a current customer, please note your campaigns and tracking pixel are still live and your logins are unchanged.

If you’re new to MNTN, we’re happy you’re here. Please explore the site to discover how you can launch direct-response campaigns on television to drive revenue, visits, and more.

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Thank you for your interest.

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