Marketing KPIs and how to read a marketing report

KPIs vs vanity metrics

A key performance indicator, or KPI, is a number that tells you whether you are moving toward a business goal. If your goal is more inquiries, the number of qualified inquiries is a KPI. If your goal is more sales, sales from marketing are a KPI.

A vanity metric is a number that can rise without your business improving. Impressions, followers, likes and total website visits can all be useful context, but on their own they do not tell you whether marketing is producing customers. A report that leads with large vanity numbers and says little about inquiries or sales deserves a closer look.

The same number can be a KPI for one business and a vanity metric for another. Video views may matter a great deal for a business whose goal is awareness ahead of a launch, and very little for a plumber who needs calls today. What makes a number a KPI is its connection to your goal.

Agree on definitions, too. What counts as a qualified inquiry? Does a call count if it lasts only a few seconds? Does a form count if it is spam? Settling these questions early makes every later report more trustworthy, because everyone is counting the same thing.

The KPIs that matter by goal

Start with your goal, choose a small number of KPIs that show progress toward it, then use supporting numbers to explain why the KPIs moved.

Keep the list of KPIs short. If everything is a priority, nothing is. A few numbers you watch closely will tell you more than a long list you skim, and the supporting numbers can stay in the background until you need them to explain a change.

Anatomy of a good marketing report

A good report is short enough to read and clear enough to act on. It usually has three parts.

A summary. A few plain sentences at the top that say what happened, how it compares with the goal and what matters most. You should be able to understand the summary without reading the charts.

Trends over time. Numbers mean more when you can see how they have changed. A good report compares the current period with earlier periods and with the goals you agreed on, and points out seasonal patterns or one-off events that explain the changes.

Actions. What will be done next, and why. A report that ends with clear next steps turns data into decisions. If the same issues appear report after report with no change in approach, ask why.

A good report also explains anything unusual, such as a tracking change, a campaign pause or a website problem, so you do not draw the wrong conclusion from a sudden jump or drop.

The format matters less than the content. A short email with a clear summary, a few key numbers and next steps can be more useful than a long dashboard. If you prefer a particular format, ask for it. Reports are for you, not for the person who prepares them.

Questions to ask about any report

Use these questions with any report, whether it comes from an agency, a freelancer or your own team.

• Compared to what? Is this better or worse than the last period, the same period last year or the goal?
• Why did it change? What caused the rise or fall, and how do you know?
• Which channels produced the inquiries or sales?
• Are these numbers based on real calls, forms and sales, or on estimates?
• What is not working, and what will change because of it?
• What happens next, and how will we know if it worked?

Red flags in reporting

Watch for these patterns. One on its own may have an innocent explanation; several together are worth a conversation.

• The report focuses on impressions, clicks and followers but rarely mentions inquiries or sales.
• The numbers shown change from one report to the next, so you cannot compare like with like.
• Results are reported without comparison to goals or earlier periods.
• People who searched for your business by name are counted as new customers the marketing found.
• Technical terms are used without explanation, and questions get vague answers.
• Every report says things are going well, but your phone and your sales say otherwise.

If you see these signs, ask for a conversation about what the report should include and how it connects to your goals. A capable partner will welcome the chance to make reporting more useful.

Building your own KPI scorecard

You do not have to rely entirely on someone else's report. A simple scorecard, kept by your business, gives you a consistent view of what matters.

• Choose a small number of KPIs that match your current goals.
• Decide where each number will come from, such as your call tracking, your forms or your sales records.
• Record the numbers on a regular schedule in one place, such as a shared spreadsheet.
• Add a short note each time explaining anything unusual.
• Compare each period with earlier periods and with your goals.
• Review the scorecard with anyone who runs your marketing, and agree on next steps.

Your own records matter here. Your sales system and your phone know things no marketing platform can see, such as which inquiries became customers. Over time, the scorecard becomes a reliable record of how your marketing is performing, independent of any one vendor or tool.

Frequently asked questions