1. Return on Ad Spend (ROAS)

ROAS is a crucial metric for any marketing campaign. It measures the revenue generated for every dollar spent on advertising. Essentially, it helps you understand the effectiveness of your ad spend and whether your campaigns are delivering a positive return on investment (ROI).

Calculating ROAS:

ROAS = Revenue from Ad Campaign / Cost of Ad Campaign

For example, if you spent $1,000 on a campaign and it generated $5,000 in revenue, your ROAS would be 5:1. This means that for every dollar spent, you earned five dollars in return.

Why ROAS Matters:

  • Budget Allocation: Understanding which campaigns yield the highest ROAS helps allocate your budget more effectively.
  • Performance Benchmarking: It provides a benchmark to compare the performance of different campaigns, channels, or time periods.
  • Optimization Opportunities: Identifying underperforming campaigns allows you to make data-driven decisions to optimize and improve results.

2. Digital KPIs

Digital KPIs are critical for tracking the performance of your online marketing efforts. These metrics provide insights into how your digital presence is contributing to your overall marketing goals. Key digital KPIs include:

1. Website Traffic:

  • Total Visits: The number of times your website is visited.
  • Unique Visitors: The number of distinct individuals visiting your site.
  • Page Views: The total number of pages viewed on your site.

2. Conversion Rate:

  • The percentage of visitors who complete a desired action, such as making a purchase or filling out a contact form.
  • Formula: Conversion Rate = Conversions / Total Visitors X 100

3. Bounce Rate:

  • The percentage of visitors who leave your site after viewing only one page.
  • A high bounce rate may indicate that your landing pages need improvement.

4. Click-Through Rate (CTR):

  • The percentage of people who click on your ad or link out of the total who view it.
  • Formula: CTR = Clicks / Impressions X 100

5. Cost Per Acquisition (CPA):

  • The cost of acquiring a new customer through a particular campaign.
  • Formula: CPA = Total Campaign Cost / Number of Acquisitions

6. Social Media Engagement:

  • Metrics like likes, shares, comments, and follower growth help gauge your social media presence and audience engagement.

3. Net Promoter Score (NPS)

NPS is a powerful tool for measuring customer satisfaction and loyalty. It’s based on a single question: “How likely are you to recommend our product/service to a friend or colleague?” Respondents answer on a scale of 0 to 10, and based on their scores, they are categorized as:

  • Promoters (9-10): Loyal enthusiasts who will keep buying and refer others.
  • Passives (7-8): Satisfied but unenthusiastic customers who are vulnerable to competitive offerings.
  • Detractors (0-6): Unhappy customers who can damage your brand through negative word-of-mouth.

Calculating NPS:

NPS = % Promoters – % Detractors

For instance, if 70% of respondents are Promoters, 20% are Passives, and 10% are Detractors, your NPS would be 60.

Why NPS Matters:

  • Customer Loyalty: A high NPS indicates strong customer loyalty and satisfaction.
  • Growth Potential: Promoters are more likely to refer new customers, driving organic growth.
  • Feedback for Improvement: Detractors provide valuable feedback on areas that need improvement.

4. Customer Surveys

Customer surveys are a direct way to gather feedback from your audience. They can provide insights into customer satisfaction, preferences, and areas for improvement. There are several types of customer surveys, including:

1. Customer Satisfaction (CSAT) Surveys:

  • These surveys measure how satisfied customers are with your product or service.
  • Common question: “How satisfied are you with our product/service?”

2. Post-Purchase Surveys:

  • Sent after a purchase to understand the buying experience.
  • Questions may focus on the ease of the purchase process, product satisfaction, and customer service.
  • There are two questions that ALL marketers should ask to help drive their business success:
    • How did you hear about us?
    • Why did you make your last purchase?

3. Product Feedback Surveys:

  • Gather detailed feedback on specific products or features.
  • Questions can address usability, features, and performance.

4. Market Research Surveys:

  • Aim to understand broader market trends, customer needs, and preferences.
  • Can help in developing new products or improving existing ones.

Designing Effective Surveys:

  • Clear Objectives: Define what you want to learn from the survey.
  • Short and Focused: Keep surveys concise to encourage completion.
  • Relevant Questions: Ask questions that directly relate to your objectives.
  • Actionable Insights: Use the feedback to make data-driven decisions and improvements.

5. Customer Lifetime Value (CLV)

Customer Lifetime Value (CLV) is a prediction of the net profit attributed to the entire future relationship with a customer. Understanding CLV helps in assessing how much you can spend on acquiring new customers while remaining profitable.

Calculating CLV:

CLV = (Average Purchase Value X Average Purchase Frequency Rate / Customer Churn Rate) X Profit Margin

Why CLV Matters:

  • Resource Allocation: Helps determine how much to invest in acquiring and retaining customers.
  • Customer Segmentation: Identifies high-value customers who warrant special attention and offers.
  • Strategic Decision Making: Guides long-term strategies for growth and customer relationship management.

6. Churn Rate

Churn rate is the percentage of customers who stop using your product or service during a given time period. Keeping track of churn rate helps in understanding customer retention and identifying areas for improvement.

Calculating Churn Rate:

Churn Rate = Number of Customers Lost During Period / Number of Customers at Start of Period X 100

Why Churn Rate Matters:

  • Customer Retention: High churn rates indicate problems with customer satisfaction or product performance.
  • Revenue Impact: Reducing churn is often more cost-effective than acquiring new customers.
  • Product Improvement: Provides insights into areas where the product or service can be improved to retain customers.

7. Customer Acquisition Cost (CAC)

Customer Acquisition Cost (CAC) is the total cost of acquiring a new customer, including all marketing and sales expenses. It’s a critical metric for understanding the efficiency and effectiveness of your customer acquisition strategies.

Calculating CAC:

CAC = Total Marketing and Sales Expenses / Number of New Customers Acquired

Why CAC Matters:

  • Budget Planning: Helps in planning and allocating the budget more efficiently.
  • Profitability Analysis: When compared with CLV, it helps determine the profitability of customer acquisition efforts.
  • Performance Tracking: Allows you to track and optimize the cost-effectiveness of your marketing and sales strategies.

8. Social Media Metrics

Social media has become a vital part of marketing strategies. Key social media metrics include:

  • Engagement Rate: Measures the level of interaction with your content (likes, comments, shares).
  • Follower Growth: Tracks the increase or decrease in your social media followers.
  • Impressions and Reach: Indicates how many times your content is seen and how many unique users see it.
  • Sentiment Analysis: Evaluates the sentiment (positive, negative, neutral) of social media mentions.

Why Social Media Metrics Matter:

  • Brand Awareness: Helps in understanding how well your brand is known and perceived.
  • Content Performance: Indicates which types of content resonate most with your audience.
  • Community Building: Provides insights into how engaged and loyal your audience is.

9. Email Marketing Metrics

Email marketing remains a powerful tool. Key metrics to track include:

  • Open Rate: The percentage of recipients who open your email.
  • Click-Through Rate (CTR): The percentage of recipients who click on links within your email.
  • Conversion Rate: The percentage of recipients who take the desired action after clicking through your email.
  • Unsubscribe Rate: The percentage of recipients who opt-out from your email list.

Why Email Marketing Metrics Matter:

  • Audience Engagement: Indicates how well your emails capture and maintain audience interest.
  • Campaign Effectiveness: Helps in assessing the performance of your email campaigns.
  • List Health: Provides insights into the quality and relevance of your email list.

10. Brand Awareness and Perception

Brand awareness and perception metrics help in understanding how well your brand is recognized and what associations people have with it. Methods to measure these include:

  • Brand Surveys: Directly ask customers about their awareness and perception of your brand.
  • Social Listening: Monitor social media and online platforms to gather insights on brand mentions and sentiment.
  • Share of Voice: Measure your brand’s presence in the market compared to competitors.

Why Brand Awareness and Perception Matter:

  • Market Positioning: Understand where your brand stands in the market.
  • Customer Insights: Gain insights into how customers perceive your brand and what drives their loyalty.
  • Competitive Analysis: Identify strengths and weaknesses relative to competitors.


Measuring marketing success requires a multifaceted approach that includes various metrics and methods.

Beyond ROAS, digital KPIs, NPS, and customer surveys, incorporating metrics such as CLV, churn rate, CAC, social media metrics, email marketing metrics, and brand awareness can provide a more comprehensive view of your marketing effectiveness.
By regularly tracking and analysing these metrics, you can make informed decisions, optimize your strategies, and ultimately achieve greater success in your marketing efforts.

At Kaimono, we specialize in leveraging these metrics to help brands thrive in an ever-evolving marketplace.