Top Marketing KPIs Every CMO Should Be Tracking in 2025

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In 2025, the role of data in marketing is more critical than ever. For Chief Marketing Officers (CMOs), tracking the right Key Performance Indicators (KPIs) is essential to measure marketing success, drive ROI, and ensure alignment with business goals. As marketing strategies become more complex, with a mix of digital, social, and traditional channels, identifying the most impactful KPIs allows CMOs to make data-driven decisions.

This guide will cover the most important KPIs for assessing marketing performance in 2025 and how to align these metrics with your broader business objectives.

The Most Important Metrics for Assessing Marketing Performance

Customer Acquisition Cost (CAC)
Return on Marketing Investment (ROMI)

Customer Lifetime Value (CLV)
Conversion Rate

Lead-to-Customer Ratio
Engagement Rate
Website Traffic by Source
Email Open and Click-Through Rates (CTR)
Customer Retention Rate

Customer Acquisition Cost (CAC)
Return on Marketing Investment (ROMI)

Customer Lifetime Value (CLV)
Conversion Rate

Lead-to-Customer Ratio
Engagement Rate
Website Traffic by Source
Email Open and Click-Through Rates (CTR)
Customer Retention Rate

Here are the top marketing KPIs CMOs should track to ensure their strategies are delivering results:

Customer Acquisition Cost (CAC)
CAC measures the total cost of acquiring a new customer, including marketing and sales expenses. It’s a critical metric for evaluating the efficiency of your marketing investments.
Formula: CAC = Total Marketing & Sales Expenses ÷ Number of New Customers Acquired
- Example: If you spend $50,000 on marketing in a quarter and acquire 500 customers, your CAC is $100.
Why it matters: CAC helps you understand the cost-effectiveness of your marketing strategies and shows where you might need to optimize spending.
Return on Marketing Investment (ROMI)
ROMI calculates the revenue generated by marketing activities relative to the cost of those activities. It’s one of the most essential KPIs for understanding the overall impact of your marketing efforts.
Formula: ROMI = (Revenue from Marketing – Marketing Costs) ÷ Marketing Costs
- Example: If a campaign generated $200,000 in revenue with a $50,000 budget, the ROMI would be 3x.
Why it matters: ROMI helps CMOs identify which marketing channels and campaigns are driving the most revenue and where to invest more resources.
Customer Lifetime Value (CLV)
CLV measures the total revenue a business can expect from a customer throughout their entire relationship. When paired with CAC, it helps determine the long-term profitability of your customer acquisition efforts.
Formula: CLV = (Average Purchase Value × Purchase Frequency) × Customer Lifespan
- Example: If a customer spends $100 per purchase, buys 4 times a year, and stays with your brand for 5 years, the CLV is $2,000.
Why it matters: Tracking CLV allows you to focus on retaining high-value customers, improving overall profitability.
Conversion Rate
Conversion rate tracks the percentage of website visitors or leads who take a desired action, such as making a purchase, filling out a form, or signing up for a newsletter.
Formula: Conversion Rate = (Conversions ÷ Total Visitors) × 100
- Example: If 1,000 people visit your product page and 50 make a purchase, your conversion rate is 5%.
Why it matters: A high conversion rate indicates that your messaging and campaigns are resonating with your audience and leading to actual business outcomes.
Lead-to-Customer Ratio
This KPI measures the percentage of marketing-qualified leads (MQLs) that convert into paying customers. It helps assess the quality of your leads and the effectiveness of your sales funnel.
Formula: Lead-to-Customer Ratio = Number of Customers ÷ Number of Leads
- Example: If you generate 500 leads in a quarter and 50 of them become customers, your lead-to-customer ratio is 10%.
Why it matters: It shows how well your lead generation efforts are translating into revenue, helping you refine your lead nurturing strategies.
Engagement Rate
Engagement rate measures how actively your audience interacts with your content across social media, email, or your website. High engagement is a sign that your content resonates with your audience.
Formula: Engagement Rate = (Total Engagements ÷ Total Impressions) × 100
- Example: If a social media post receives 1,000 likes, shares, and comments out of 10,000 impressions, the engagement rate is 10%.
Why it matters: Engagement is an indicator of brand loyalty and customer interest, making it a key metric for optimizing content and improving customer relationships.
Website Traffic by Source
Website traffic tells you how many people are visiting your site, and tracking traffic by source (organic search, paid ads, social media, referrals, etc.) helps you understand which channels are driving the most visitors.
- Example: If your website gets 50,000 visitors in a month, with 60% from organic search, 20% from paid ads, and 20% from social media, you know where your efforts are most effective.
Why it matters: Understanding which channels are driving traffic helps you allocate marketing budgets more effectively and optimize underperforming sources.
Email Open and Click-Through Rates (CTR)
Email open rates and CTR are key metrics for assessing the performance of your email marketing campaigns.
Formula: CTR = (Number of Clicks ÷ Number of Delivered Emails) × 100
- Example: If you send 10,000 emails and 500 people click on the link, your CTR is 5%.
Why it matters: High open and click-through rates indicate that your subject lines, messaging, and calls to action are engaging and relevant to your audience.
Customer Retention Rate
Customer retention rate measures how many customers continue to engage with your brand over time. It’s a critical KPI for understanding brand loyalty and the effectiveness of your retention strategies.
Formula: Retention Rate = ((Customers at End of Period – New Customers) ÷ Customers at Start of Period) × 100
- Example: If you have 1,000 customers at the start of the year, gain 200 new ones, and end with 1,100, your retention rate is 90%.
Why it matters: High retention rates suggest your customers are satisfied and loyal, which is essential for long-term business success.

Here are the top marketing KPIs CMOs should track to ensure their strategies are delivering results:

Customer Acquisition Cost (CAC)
CAC measures the total cost of acquiring a new customer, including marketing and sales expenses. It’s a critical metric for evaluating the efficiency of your marketing investments.
Formula: CAC = Total Marketing & Sales Expenses ÷ Number of New Customers Acquired
- Example: If you spend $50,000 on marketing in a quarter and acquire 500 customers, your CAC is $100.
Why it matters: CAC helps you understand the cost-effectiveness of your marketing strategies and shows where you might need to optimize spending.
Return on Marketing Investment (ROMI)
ROMI calculates the revenue generated by marketing activities relative to the cost of those activities. It’s one of the most essential KPIs for understanding the overall impact of your marketing efforts.
Formula: ROMI = (Revenue from Marketing – Marketing Costs) ÷ Marketing Costs
- Example: If a campaign generated $200,000 in revenue with a $50,000 budget, the ROMI would be 3x.
Why it matters: ROMI helps CMOs identify which marketing channels and campaigns are driving the most revenue and where to invest more resources.
Customer Lifetime Value (CLV)
CLV measures the total revenue a business can expect from a customer throughout their entire relationship. When paired with CAC, it helps determine the long-term profitability of your customer acquisition efforts.
Formula: CLV = (Average Purchase Value × Purchase Frequency) × Customer Lifespan
- Example: If a customer spends $100 per purchase, buys 4 times a year, and stays with your brand for 5 years, the CLV is $2,000.
Why it matters: Tracking CLV allows you to focus on retaining high-value customers, improving overall profitability.
Conversion Rate
Conversion rate tracks the percentage of website visitors or leads who take a desired action, such as making a purchase, filling out a form, or signing up for a newsletter.
Formula: Conversion Rate = (Conversions ÷ Total Visitors) × 100
- Example: If 1,000 people visit your product page and 50 make a purchase, your conversion rate is 5%.
Why it matters: A high conversion rate indicates that your messaging and campaigns are resonating with your audience and leading to actual business outcomes.
Lead-to-Customer Ratio
This KPI measures the percentage of marketing-qualified leads (MQLs) that convert into paying customers. It helps assess the quality of your leads and the effectiveness of your sales funnel.
Formula: Lead-to-Customer Ratio = Number of Customers ÷ Number of Leads
- Example: If you generate 500 leads in a quarter and 50 of them become customers, your lead-to-customer ratio is 10%.
Why it matters: It shows how well your lead generation efforts are translating into revenue, helping you refine your lead nurturing strategies.
Engagement Rate
Engagement rate measures how actively your audience interacts with your content across social media, email, or your website. High engagement is a sign that your content resonates with your audience.
Formula: Engagement Rate = (Total Engagements ÷ Total Impressions) × 100
- Example: If a social media post receives 1,000 likes, shares, and comments out of 10,000 impressions, the engagement rate is 10%.
Why it matters: Engagement is an indicator of brand loyalty and customer interest, making it a key metric for optimizing content and improving customer relationships.
Website Traffic by Source
Website traffic tells you how many people are visiting your site, and tracking traffic by source (organic search, paid ads, social media, referrals, etc.) helps you understand which channels are driving the most visitors.
- Example: If your website gets 50,000 visitors in a month, with 60% from organic search, 20% from paid ads, and 20% from social media, you know where your efforts are most effective.
Why it matters: Understanding which channels are driving traffic helps you allocate marketing budgets more effectively and optimize underperforming sources.
Email Open and Click-Through Rates (CTR)
Email open rates and CTR are key metrics for assessing the performance of your email marketing campaigns.
Formula: CTR = (Number of Clicks ÷ Number of Delivered Emails) × 100
- Example: If you send 10,000 emails and 500 people click on the link, your CTR is 5%.
Why it matters: High open and click-through rates indicate that your subject lines, messaging, and calls to action are engaging and relevant to your audience.
Customer Retention Rate
Customer retention rate measures how many customers continue to engage with your brand over time. It’s a critical KPI for understanding brand loyalty and the effectiveness of your retention strategies.
Formula: Retention Rate = ((Customers at End of Period – New Customers) ÷ Customers at Start of Period) × 100
- Example: If you have 1,000 customers at the start of the year, gain 200 new ones, and end with 1,100, your retention rate is 90%.
Why it matters: High retention rates suggest your customers are satisfied and loyal, which is essential for long-term business success.

Here are the top marketing KPIs CMOs should track to ensure their strategies are delivering results:

Customer Acquisition Cost (CAC)
CAC measures the total cost of acquiring a new customer, including marketing and sales expenses. It’s a critical metric for evaluating the efficiency of your marketing investments.
Formula: CAC = Total Marketing & Sales Expenses ÷ Number of New Customers Acquired
- Example: If you spend $50,000 on marketing in a quarter and acquire 500 customers, your CAC is $100.
Why it matters: CAC helps you understand the cost-effectiveness of your marketing strategies and shows where you might need to optimize spending.
Return on Marketing Investment (ROMI)
ROMI calculates the revenue generated by marketing activities relative to the cost of those activities. It’s one of the most essential KPIs for understanding the overall impact of your marketing efforts.
Formula: ROMI = (Revenue from Marketing – Marketing Costs) ÷ Marketing Costs
- Example: If a campaign generated $200,000 in revenue with a $50,000 budget, the ROMI would be 3x.
Why it matters: ROMI helps CMOs identify which marketing channels and campaigns are driving the most revenue and where to invest more resources.
Customer Lifetime Value (CLV)
CLV measures the total revenue a business can expect from a customer throughout their entire relationship. When paired with CAC, it helps determine the long-term profitability of your customer acquisition efforts.
Formula: CLV = (Average Purchase Value × Purchase Frequency) × Customer Lifespan
- Example: If a customer spends $100 per purchase, buys 4 times a year, and stays with your brand for 5 years, the CLV is $2,000.
Why it matters: Tracking CLV allows you to focus on retaining high-value customers, improving overall profitability.
Conversion Rate
Conversion rate tracks the percentage of website visitors or leads who take a desired action, such as making a purchase, filling out a form, or signing up for a newsletter.
Formula: Conversion Rate = (Conversions ÷ Total Visitors) × 100
- Example: If 1,000 people visit your product page and 50 make a purchase, your conversion rate is 5%.
Why it matters: A high conversion rate indicates that your messaging and campaigns are resonating with your audience and leading to actual business outcomes.
Lead-to-Customer Ratio
This KPI measures the percentage of marketing-qualified leads (MQLs) that convert into paying customers. It helps assess the quality of your leads and the effectiveness of your sales funnel.
Formula: Lead-to-Customer Ratio = Number of Customers ÷ Number of Leads
- Example: If you generate 500 leads in a quarter and 50 of them become customers, your lead-to-customer ratio is 10%.
Why it matters: It shows how well your lead generation efforts are translating into revenue, helping you refine your lead nurturing strategies.
Engagement Rate
Engagement rate measures how actively your audience interacts with your content across social media, email, or your website. High engagement is a sign that your content resonates with your audience.
Formula: Engagement Rate = (Total Engagements ÷ Total Impressions) × 100
- Example: If a social media post receives 1,000 likes, shares, and comments out of 10,000 impressions, the engagement rate is 10%.
Why it matters: Engagement is an indicator of brand loyalty and customer interest, making it a key metric for optimizing content and improving customer relationships.
Website Traffic by Source
Website traffic tells you how many people are visiting your site, and tracking traffic by source (organic search, paid ads, social media, referrals, etc.) helps you understand which channels are driving the most visitors.
- Example: If your website gets 50,000 visitors in a month, with 60% from organic search, 20% from paid ads, and 20% from social media, you know where your efforts are most effective.
Why it matters: Understanding which channels are driving traffic helps you allocate marketing budgets more effectively and optimize underperforming sources.
Email Open and Click-Through Rates (CTR)
Email open rates and CTR are key metrics for assessing the performance of your email marketing campaigns.
Formula: CTR = (Number of Clicks ÷ Number of Delivered Emails) × 100
- Example: If you send 10,000 emails and 500 people click on the link, your CTR is 5%.
Why it matters: High open and click-through rates indicate that your subject lines, messaging, and calls to action are engaging and relevant to your audience.
Customer Retention Rate
Customer retention rate measures how many customers continue to engage with your brand over time. It’s a critical KPI for understanding brand loyalty and the effectiveness of your retention strategies.
Formula: Retention Rate = ((Customers at End of Period – New Customers) ÷ Customers at Start of Period) × 100
- Example: If you have 1,000 customers at the start of the year, gain 200 new ones, and end with 1,100, your retention rate is 90%.
Why it matters: High retention rates suggest your customers are satisfied and loyal, which is essential for long-term business success.

How to Align KPIs with Business Objectives

Identify Key Business Goals
Focus on Metrics That Drive Growth
Set Benchmarks and Continuously Monitor Progress

To maximize the impact of your marketing efforts, it’s important to ensure that your KPIs are aligned with broader business objectives. Here’s how:

Identify Key Business Goals
Start by understanding your company’s overall goals, such as increasing revenue, expanding into new markets, or building brand awareness. Your marketing KPIs should directly support these objectives.
- Example: If the company’s goal is to boost revenue by 15%, you should focus on KPIs like conversion rates, CAC, and ROMI to track how marketing contributes to that target.
Focus on Metrics That Drive Growth
Not all KPIs are equal. Focus on the metrics that directly impact business growth, such as lead-to-customer ratio, CLV, and ROMI, to ensure your marketing strategies are moving the needle.
- Example: If customer retention is a priority, focus on retention rate and CLV to measure how effectively your marketing efforts are keeping customers engaged.
Set Benchmarks and Continuously Monitor Progress
Establish benchmarks for each KPI based on historical data or industry standards, and regularly review performance. Adjust strategies as needed to ensure you’re on track to meet your business objectives.
- Example: If your conversion rate is below industry averages, analyze your customer journey to find areas for optimization, such as improving landing page design or adjusting calls to action.

To maximize the impact of your marketing efforts, it’s important to ensure that your KPIs are aligned with broader business objectives. Here’s how:

Identify Key Business Goals
Start by understanding your company’s overall goals, such as increasing revenue, expanding into new markets, or building brand awareness. Your marketing KPIs should directly support these objectives.
- Example: If the company’s goal is to boost revenue by 15%, you should focus on KPIs like conversion rates, CAC, and ROMI to track how marketing contributes to that target.
Focus on Metrics That Drive Growth
Not all KPIs are equal. Focus on the metrics that directly impact business growth, such as lead-to-customer ratio, CLV, and ROMI, to ensure your marketing strategies are moving the needle.
- Example: If customer retention is a priority, focus on retention rate and CLV to measure how effectively your marketing efforts are keeping customers engaged.
Set Benchmarks and Continuously Monitor Progress
Establish benchmarks for each KPI based on historical data or industry standards, and regularly review performance. Adjust strategies as needed to ensure you’re on track to meet your business objectives.
- Example: If your conversion rate is below industry averages, analyze your customer journey to find areas for optimization, such as improving landing page design or adjusting calls to action.

To maximize the impact of your marketing efforts, it’s important to ensure that your KPIs are aligned with broader business objectives. Here’s how:

Identify Key Business Goals
Start by understanding your company’s overall goals, such as increasing revenue, expanding into new markets, or building brand awareness. Your marketing KPIs should directly support these objectives.
- Example: If the company’s goal is to boost revenue by 15%, you should focus on KPIs like conversion rates, CAC, and ROMI to track how marketing contributes to that target.
Focus on Metrics That Drive Growth
Not all KPIs are equal. Focus on the metrics that directly impact business growth, such as lead-to-customer ratio, CLV, and ROMI, to ensure your marketing strategies are moving the needle.
- Example: If customer retention is a priority, focus on retention rate and CLV to measure how effectively your marketing efforts are keeping customers engaged.
Set Benchmarks and Continuously Monitor Progress
Establish benchmarks for each KPI based on historical data or industry standards, and regularly review performance. Adjust strategies as needed to ensure you’re on track to meet your business objectives.
- Example: If your conversion rate is below industry averages, analyze your customer journey to find areas for optimization, such as improving landing page design or adjusting calls to action.

Ready to Optimize Your Marketing KPIs for 2025?

Tracking the right KPIs ensures that your marketing efforts are aligned with your company’s goals, delivering measurable results. By focusing on metrics like CAC, ROMI, and conversion rates, you can gain valuable insights into the effectiveness of your strategies and optimize for better performance.

Need help refining your marketing KPIs? Let’s connect to explore how Bloom Consulting Group can help you develop a data-driven marketing approach that delivers real results.

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