Essential Marketing KPIs for Small Business: Key Metrics You Need to Track

10 Marketing KPIs for Small Businesses

These metrics help you measure performance, improve strategies, and focus on what drives revenue. Here's a quick overview of what you'll learn:

• Website Visitors: Track total traffic, unique visitors, and traffic sources.
• Sales Conversion Rate: Measure how many visitors turn into paying customers.
• Customer Acquisition Cost (CAC): Understand how much it costs to gain a new customer.
• Customer Lifetime Value (CLV): Calculate the total revenue a customer brings over time.
• Marketing ROI: Compare revenue generated to marketing expenses.
• Email Campaign Performance: Analyze open rates, click-through rates, and conversions.
• Social Media Results: Monitor engagement, reach, and follower growth.
• Google Search Position: Improve SEO to rank higher and attract more traffic.
• New Lead Numbers: Track how many potential customers your efforts are bringing in.
• Customer Retention Rate: Focus on keeping existing customers for long-term growth.

Hold Up: What's a Key Performance Indicator (KPI)?

Before we talk about which KPIs to track, it's important to define what KPIs are, and why they're so important to your business strategy.

In my membership trainings, I like to say if you don't know where you're going, how will you know when you get there? Key performance indicators keep business owners from relying solely on "gut feelings" and provide quantifiable, measurable data to gauge the success of your business objectives (not only sales and marketing, but also financial data, like cash flow).

Think of KPIs as mileposts that help businesses stay on track and take action.

There are two types of KPIs: leading and lagging. Leading KPIs are predictive, future focused (good customer service scores lead to higher sales). Lagging KPIs are based on past performance (web visitors, profitability).

Why are these the right KPIs?

We've carefully selected these marketing KPIs because:

• They help you measure what works and what doesn’t.
• You can make smarter decisions about your marketing budget.
• They align your efforts with clear business goals.

Start by choosing 2-3 KPIs that align with your goals (e.g., sales growth or customer retention). Use tools like Google Analytics, email dashboards, and social media insights to track performance. Regularly review and adjust your strategy based on the data.

Tip: Focus on actionable insights, not just numbers, to drive real growth.

1. Total Website Visitors

Tracking total website visitors is a key starting point for understanding your online performance. This metric shows how many people are landing on your site and provides a foundation for measuring your marketing efforts.

To get the most out of this data, focus on these key metrics:

• Monthly Unique Visitors: The number of individual users visiting your site.
• Page Views Per Visit: How many pages each visitor explores during their session.
• Average Time on Site: How long visitors stay engaged with your content.

Traffic patterns can highlight which marketing channels are working. For instance, a sudden spike in visits after a specific campaign or piece of content can help identify strategies worth repeating.

Analyze Traffic Over Time

Breaking down traffic by different time periods can offer valuable insights:

Also, keep an eye on traffic sources, device types, geographic locations, and peak times. This information helps you understand your audience and refine your approach.

Setting Goals and Tracking Tools

Your traffic goals should align with your business type and size. For example, a local service provider might strive for 1,000 monthly visitors, while an e-commerce site could target 10,000 or more. Use tools like Google Analytics 4 (GA4) to track these metrics effectively.

GA4's custom dashboards make it easier to spot trends and make informed decisions.

If Google Analytics is overwhelming (and it is for most business owners), Plausible provides a much more user-friendly dashboard:

In the Plausible example (above), you see the total unique visitors, page views, and time on site (visit duration) clearly displayed. You can also download your data, and Plausible is GDPR compliant.

If you're more of a spreadsheet person, I suggest Coefficient's free GA4 Google Sheet Dashboard. You need to refresh it every month, but it does give you an easy to read spreadsheet of all your important website data and if you keep it up you'll have the history you need to make key decisions.

In the above Coefficient GA4 dashboard example, you can see the total users, new users, pages per session, and average session duration clearly displayed.

You can also use the spreadsheet to track performance over time, shown below:

These tools are great for exploring trends and seasonal patterns.

We love websites because it's the space that you own (unlike social media or ads). If you're not getting the traffic you want, follow the tips below.

Tips to Boost Website Traffic

• Optimize your content with relevant keywords.
• Publish content consistently to maintain engagement.
• Share your content across various platforms (if you want to know how much, listen to my interview with Benjamin Dell, founder of MissingLettr). PS - you have to share more than you think.
• Address technical SEO issues to improve site performance (use Google PageSpeed Insights).
• Experiment with different content formats to see what resonates.

Remember, quality matters more than quantity. A smaller number of engaged visitors is far better than thousands who leave your site immediately. Keep an eye on bounce rates to ensure you're attracting the right audience.

Trust me on this. We have a client that gets 40% of their leads from Google. They don't need thousands of web visitors — they need enough for a full consultancy.

Understanding total website visitors is the first step to evaluating your marketing efforts. Once you have a clear picture of your traffic trends, you can dive deeper into how these visits translate into meaningful actions like conversions.

2. Sales Conversion Rate

Visitors show interest, but the sales conversion rate tells you how well that interest turns into actual revenue. It measures the percentage of visitors who complete a specific action, like making a purchase or signing up.

If you want to grow your business, conversions are one of the key KPIs for small business success.

How to Calculate Conversion Rate

The formula is simple: (conversions ÷ total visitors) × 100. For example, if you get 200 sales from 10,000 visitors, your conversion rate is 2%.

Too often, marketers focus on traffic. As a business owner, you want QUALITY traffic. The cornerstone of any digital marketing strategy is to tie digital marketing KPIs to key financial metrics as much as possible. If you're not strictly e-commerce or SaaS, sometimes this can be tricky: you may not know how people found you, or even whether they've been to your website. That's why so many people as 'how did you find us?' as part of their onboarding.

Here are a few of the conversion rates by industry:

Factors That Impact Conversion Rates

Several elements can significantly influence your conversion rate:

• Page Load Speed: Slow-loading pages drive visitors away.
• Mobile Optimization: Ensure your site works seamlessly on smartphones.
• Clear Call-to-Action: Make it obvious what you want users to do.
• Trust Signals: Include reviews, certifications, or secure payment badges.
• Checkout Process: Simplify it to reduce friction.

.... if you're surprised to see the checkout process here, I made a video about how payments and marketing are related:

Types of Conversions to Track

It's important to understand there are several types of conversions. Keep an eye on various conversion points throughout the customer journey:

• Micro-conversions: Small actions like signing up for a newsletter or downloading a resource.
• Mid-funnel conversions: Actions such as starting a free trial or booking a consultation.
• Macro-conversions: The ultimate goal - purchases or service subscriptions.

Tracking these helps you identify where customers engage most and where they drop off.

Boosting Your Conversion Rate

To improve, analyze your funnel and address weak spots. Here are some proven tactics:

• Run A/B tests to refine landing pages.
• Simplify and streamline the checkout process.
• Showcase customer testimonials to build trust (trust badges, customer satisfaction badges, SSL... it all ads up!).
• Use limited-time offers to create urgency.
• Provide multiple payment options to cater to different preferences.

These strategies can help turn more visitors into paying customers.

3. Cost to Acquire Each Customer

Once you’ve assessed your conversion rate, it’s time to figure out how much it costs to bring in a new customer. This is where Customer Acquisition Cost (CAC) comes in. CAC tells you how much you’re spending to gain each new customer (IMHO it's one of the most important small business KPIs).

Breaking Down CAC

Your total spending on customer acquisition includes things like:

• Advertising: Paid ads on platforms like Google or Facebook
• Salaries: Wages for your marketing and sales teams
• Tools: Software and services that support your campaigns
• Content: Blog posts, videos, and other materials
• Events: Costs tied to trade shows or webinars
• Promotions: Freebies, discounts, or branded merchandise

Calculating CAC

To find your CAC, divide your total marketing and sales spend by the number of new customers acquired. For example, if you spend $5,000 and onboard 100 new customers, your CAC is $50 per customer.

Tips to Lower Your CAC

Want to reduce costs? Here are a few ideas:

• Target your ads better: Focus on audiences most likely to convert.
• Polish your landing pages: Make them clear and compelling.
• Leverage referrals: Encourage existing customers to bring in new ones.
• Automate repetitive tasks: Save time and resources.
• Prioritize retention: Keeping customers is often cheaper than acquiring new ones.

Balancing CAC with Profitability

A good rule of thumb is to maintain a CAC-to-LTV (Lifetime Value) ratio of at least 1:3. For instance, if your CAC is $100, aim for an LTV of $300 or more.

Warning Signs to Watch

Be alert for these issues:

• Ad costs are rising, but conversions aren’t.
• It takes longer than 12 months to recover your CAC.
• Your customer lifetime value barely exceeds what you spend to acquire them.
• Churn rates are climbing, even with increased spending.
• Marketing costs are growing faster than your revenue.

4. Average Customer Value Over Time

Customer Lifetime Value (CLV) helps you measure the total revenue a customer brings in during their relationship with your business. It's a key metric to determine whether your acquisition costs are worth it. Paired with Customer Acquisition Cost (CAC), it gives a complete picture of customer profitability. After analyzing other marketing metrics, CLV adds depth to your understanding of long-term customer value.

By combining CLV with acquisition costs, you can pinpoint how profitable your customers are over time.

How to Calculate CLV

Here's a simple example: If a customer spends $75 per purchase, makes 4 purchases a year, and stays with you for 3 years, their CLV would be:

$75 × 4 × 3 = $900

Industry Benchmarks for CLV

Factors That Impact CLV

Purchase Frequency

• Track how often customers buy.
• Monitor the time between purchases.
• Look for seasonal trends in buying behavior.

Average Order Value

• Evaluate average transaction amounts and common product combinations.
• Identify opportunities for upselling or cross-selling.

Customer Retention

• Measure how long customers stay active.
• Spot where customers tend to drop off.
• Keep an eye on subscription renewal rates.

Boosting CLV involves balancing immediate actions with long-term strategies.

Sales and Marketing Strategies to Increase CLV

Quick Wins

• Bundle products for better value.
• Start loyalty programs to reward repeat customers.
• Offer discounts for bulk purchases.
• Introduce subscription plans for recurring revenue.

Long-Term Goals

• Add premium product options.
• Create programs focused on customer success.
• Enhance post-purchase support to build trust.
• Encourage referrals with incentives.

Warning Signs in CLV Metrics

Watch out for these issues:

• CLV is less than twice your customer acquisition cost.
• Average order value starts to drop.
• Customers buy less frequently.
• Customer lifespan becomes shorter.
• Subscription or renewal rates decline.

5. Marketing ROI

Measuring Marketing ROI is key to understanding which efforts are driving revenue.

Some people say there's no way to track marketing ROI. ... but there is. Marketing ROI compares the revenue generated to the cost of your marketing activities. It’s a powerful way to identify which strategies deliver the best results for your budget.

Basic ROI Formula

The formula for calculating Marketing ROI is straightforward:
ROI = [(Revenue from Marketing – Marketing Cost) / Marketing Cost] × 100

For instance, if you spend $1,000 on a campaign that generates $3,500 in sales, your ROI is 250%.

Tracking ROI by Channel

Tracking ROI for individual marketing channels can give you a clearer picture of their effectiveness. Here's a breakdown of typical ROI ranges and how often to evaluate them:

Don’t Overlook Hidden Costs

When calculating ROI, account for both direct costs (like ad spend, content creation, and tools) and indirect costs (such as staff time, software, and agency fees).

Tips to Boost ROI

• Track accurately: Use tools like UTM parameters to monitor attribution.
• Start small: Test new channels with a modest budget ($100–$200) before scaling successful campaigns.
• Set goals and review: Analyze channel performance monthly and establish clear ROI targets (e.g., email campaigns at 300%, social ads at 150%).
• Reallocate wisely: Shift budgets from underperforming channels to those delivering better returns.

Red Flags to Watch For

Be on the lookout for these issues:

• Negative ROI over multiple campaigns
• Returns consistently below 100%
• Declining ROI despite higher spending
• Customer acquisition costs eating into your profit margins

6. Email Marketing Campaign Performance

Email marketing offers a budget-friendly way to connect with your audience. To gauge how well your campaigns are doing, keep an eye on these key metrics:

Open Rate Benchmarks

Open rates typically fall between 15-25%, but with Apple's Mail Privacy Protection affecting open data, it's smart to also rely on other performance indicators.

Click-Through Rate (CTR)

CTR measures the percentage of recipients clicking on links within your email. Here's a breakdown for small businesses by industry:

Conversion Tracking

To understand how your emails drive action, measure:

• Revenue per email: The average income generated from each email sent.
• Conversion rate: The percentage of recipients completing the desired action, like making a purchase.
• List growth rate: The monthly growth of your email list, accounting for unsubscribes.

Deliverability Metrics

Make sure your emails are reaching inboxes by monitoring:

• Bounce rate: Keep this below 2%.
• Spam complaints: Aim for less than 0.1%.
• Unsubscribe rate: Stay under 0.5% per campaign.

Engagement Timing

Most clicks happen shortly after sending. The breakdown looks like this:

Mobile Performance

Since more than 60% of emails are opened on mobile devices, it's crucial to track:

• Mobile open rate: Compare mobile vs. desktop opens.
• Mobile click rate: Analyze engagement differences between platforms.
• Mobile-specific conversions: Study purchase behavior on mobile compared to desktop.

Review these metrics monthly to spot patterns and fine-tune your strategy. These email-focused insights will enhance your overall marketing performance analysis.

7. Social Media Results

Social media metrics help you understand how well your content connects with your audience. These numbers also provide insights that can guide your overall digital strategy.

We love Metricool (see image above) for social media stats and quick Google Ads edits inside the platform (read our Metricool review).

One of the biggest challenges with social is reach is increasingly abysmal (like 2% for Facebook or under 10% for Instagram). And they realllllly want to keep people on their platform so it's hard to get a lot of link traffic from there, either.

Social media is rented land, and pay to play (PS, ads are getting more expensive, too).

Engagement Rate

Engagement rate measures how well your content connects with your followers. To calculate it, divide total engagements by total followers, then multiply by 100. Here are some benchmarks small businesses can use:

Reach and Impressions

These metrics show how visible your content is:

• Reach: The number of unique users who see your content.
• Impressions: How many times your content is displayed, even if seen multiple times by the same user.

A good goal is to reach at least 25% of your followers with each post.

Follower Growth Rate

Tracking your follower growth each month can indicate how well your brand is gaining attention. Use this table to assess performance:

Social Traffic Conversion

This metric shows how effectively your social media drives website actions, such as purchases or sign-ups. Key measures include:

• Click-through rate (CTR): Aim for 1-3% on promotional posts.
• Landing page conversion: Target 2-5% for visitors from social media.
• Cost per conversion: Compare this to your overall customer acquisition cost.

Response Time

Quick responses matter. Strive for a response rate above 85%, with first replies under 3 hours and issue resolutions within 24 hours.

Content Performance

Different types of content perform differently. Keep an eye on these trends:

• Video content: Typically gets 30-40% more engagement than images.
• Stories/Reels: Can deliver 2–3 times the engagement of regular posts.
• Link posts: Often see 20-30% less engagement compared to media-heavy posts.

Regularly reviewing these metrics can help you adjust your approach and improve results.

8. Google Search Position

Your Google search position plays a key role in how easily potential customers can find your website. The higher your ranking, the more likely people are to visit your site when searching for relevant topics.

To boost your ranking, focus on solid SEO practices.

Write content that directly addresses the questions your audience is asking, using the same words and phrases they would. At the same time, make sure your website is optimized for search engines to understand and rank it effectively.

9. New Lead Numbers

Tracking new leads is a key way to see how well your marketing efforts are pulling in potential customers and to guide any needed adjustments.

The focus should be on attracting prospects who are more likely to convert.

Prioritizing quality ensures your marketing aligns with your business goals.

To measure how well you're generating leads, monitor metrics like website traffic, which reflects audience interest. By analyzing these trends, you can identify what’s working and fine-tune your approach to improve results.

We also advise using a CRM to track your pipeline and leads. People often ask about the 'best CRM,' but tracking leads and deals really comes down to your industry. Find a system that makes it easy for you to track emails, conversations, proposals, and proposal status (for a start). Having a healthy pipeline is one of many important financial metrics and KPIs that indication overall business health.

Reviewing both the quality and quantity of leads not only boosts conversions but also lays the groundwork for improving customer retention as part of your broader marketing strategy.

10. Existing Customer Retention

Retaining customers is crucial for long-term profitability. The customer retention rate shows how well your business keeps its customers over time.

Here’s a quick example: If you start January with 100 customers, gain 20 new ones, and end with 95, your retention rate is 75%. This indicates there’s room to improve.

Key metrics to keep an eye on include:

• Monthly recurring revenue (MRR) from current customers
• Repeat purchase frequency
• Average time between purchases
• Customer satisfaction scores

Tracking purchase frequency can help you spot early signs of disengagement. Acting quickly on these signals can reduce churn and keep customers engaged.

Some effective strategies to boost retention are:

• Setting up a customer feedback system
• Sending personalized communication campaigns
• Launching a loyalty program
• Automating follow-ups
• Monitoring and improving customer service metrics

While acquiring new customers fuels growth, retention increases your ROI by fostering loyalty. The best retention strategies focus on building strong relationships instead of just driving transactions. Consistently delivering value through your products or services, combined with clear communication, helps nurture loyalty. High retention supports steady revenue growth and strengthens other key business metrics.

Conclusion: Small Business KPIs

The next step is to take these detailed metrics and turn them into a clear, actionable strategy. Tracking KPIs effectively is a key factor in small business success.

When done right, KPI tracking allows you to:

• Make smarter decisions about where to allocate resources
• Spot trends in customer behavior early
• Adjust marketing campaigns to improve ROI
• Avoid wasting money on strategies that don’t work

Choose metrics that align closely with your business goals. Focus on just 2-3 KPIs that directly impact your main objectives. For example, if customer acquisition is your priority, start by tracking metrics like cost per acquisition and conversion rates before tackling more complex data.

Setting up a KPI tracking system doesn’t have to be complicated. Start with these steps:

1. Identify your main objectives.
2. Choose KPIs that clearly measure progress toward those goals.
3. Establish baseline metrics to understand your starting point.
4. Set realistic, achievable targets.
5. Regularly review and refine your approach.

Use your insights to make strategic improvements. For instance, if your email campaigns show low engagement, consider segmenting your audience or reworking your content to better meet their needs.

This focus on data not only sharpens your efforts but also prepares you for advanced strategies. As mentioned earlier, expert coaching can simplify the process. Women Conquer Business offers strategic coaching and their SMART Marketing Strategy Framework to help you create a solid KPI tracking system.

The best businesses don’t just track KPIs - they use them as a guide to make smarter marketing decisions and drive growth. By concentrating on the right metrics and making informed adjustments, you’ll be in a stronger position to hit your marketing goals and expand your business.