KPIs 101: What They Are & Why They Matter for Young Marketers

You've gotten your first internship or job in marketing. You're planning content, managing campaigns, and perhaps even doing some data analysis. The phrase "KPIs" is then dropped in a meeting, and all of a sudden you feel as though you missed a crucial Marketing 101 lecture.

Do not be afraid! You're not alone if you're still trying to understand what KPIs are, why they're important, and how to monitor them. The term overload will be avoided in this article, which will explain everything in an understandable manner.

KPIs: What Are They? (And Why Are They Important?)

Key Performance Indicator, or KPI for short, is a sophisticated way of asking, "What does success look like, and how do we measure it?"

KPIs assist marketers in determining if their efforts are truly effective or whether they need to be adjusted. They provide you with actual proof to demonstrate that your strategies are producing outcomes rather than just looking good.

For instance, posting daily on Instagram is not a KPI.

• One KPI is monitoring the rate of engagement (likes, shares, and comments).

Common KPIs Every Marketer Should Know

There are a lot of KPIs out there, but here are a few that will come up early in your career:

1. Website Traffic

• The number of visitors to your website.

• How to follow it: In this case, Google Analytics is your best friend.

2. Social Media Engagement

• Does your content get interaction?

• Likes, comments, shares, saves, and story views are important metrics.

3. Conversion Rate 

• The amount of users who genuinely complete an activity (purchase, registration, download, etc.).

• How to follow it: Examine your social media ad reports or website statistics.

4. ROI, or return on investment

• What it indicates: Do your marketing initiatives generate revenue or do they simply deplete your budget?

• Formula: (Revenue - Marketing Cost) ÷ Marketing Cost

5. Rates of Email Opens and Click-Throughs

• What it indicates: Do people read and interact with your emails?

• An open rate of 20–30% is good, but click-throughs are more important.

KPIs will become your secret weapon as you learn marketing experience. They assist you in improving your methods, providing actual evidence to support your ideas, and demonstrating your value to your supervisor or clients.

You will therefore have real insights to provide the next time someone asks about KPIs rather than just nodding along.