Unit 03 (Key Performance Indicators) defines how to choose, calculate, and apply KPIs that align analytics to business goals across ecommerce, lead generation, and media models, building on Unit 02’s metric definitions and Chapter 3’s KPI frameworks. It emphasizes selecting a small, actionable KPI set per model, setting baselines and SMART targets, and segmenting KPIs to drive channel, UX, and CRO decisions.

What this unit covers

• KPI principles: Tie KPIs to business outcomes, not vanity metrics; establish baselines, set SMART targets, and review trends, comparisons, and segments before acting.

• GA4 KPI shifts: Favor engagement rate, engaged sessions, user/session conversion rate, and average engagement time over legacy bounce; understand user vs session CR for meaningful goal tracking.

• Model-specific KPI blueprints: Choose traffic, conversion, and value KPIs that reflect how each business earns revenue or value, then add 1–2 diagnostics per stack to catch friction early.

Recommended KPIs by business model

• Retail/ecommerce

  • Core: Sessions, session conversion rate, average order value (AOV), revenue per session (RPS).

  • Diagnostics: Device/browser conversion split, checkout funnel step-through, add-to-cart rate.

  • Why: RPS provides a direct benchmark for paid media bidding and scale; device/browser splits surface UX defects.

• Lead generation

  • Core: Users, lead conversion rate, close rate, average deal value, estimated revenue per session = $\text{CR}\times \text{Close Rate}\times \text{Deal Value}$.

  • Diagnostics: Channel quality mix (lead-to-close by source), form completion and error rates.

  • Why: Site doesn’t transact online; value realization happens post-lead, so KPI stack must include sales outcomes.

• Media/subscription

  • Core: Sessions, non-subscriber users, pages per session, sessions per user, subscription revenue, trial conversion rate.

  • Diagnostics: Scroll depth and engagement time on premium/landing articles.

  • Why: Ad revenue scales with sessions and depth; subscription growth hinges on repeat engagement and trial conversion.

Key KPI definitions and usage

• Engagement rate: Engaged sessions ÷ sessions; better intent signal than bounce for GA4.

• User vs session conversion rate: User CR = users who convert ÷ users; session CR = sessions with a conversion ÷ sessions; track both to capture multi-visit journeys.

• Revenue per session (RPS): Total revenue ÷ sessions; use as CPC ceiling and channel profitability bar.

• Lifetime/value KPIs: LTV and LTV:CAC ratio connect marketing efficiency to sustainability; pair with acquisition KPIs.

Segmentation to make KPIs actionable

• Always break KPIs by device, browser, new vs returning, channel/source, geo, and time to reveal where to intervene first.

• Expect patterns: returning and email traffic convert higher; display needs CPC discipline relative to RPS; channel mixes differ by model.

In-class activities

• KPI selection lab: Given three site profiles (retail, lead gen, media), select 4–6 KPIs, define targets, and justify trade-offs.

• RPS drill: From channel tables, compute AOV, CR, and RPS; recommend bid caps and channels to scale or cut.

• Engagement vs conversion: Compare engagement rate and CR across two landing pages; propose one test tied to KPI uplift.

Expected outcomes

• Select a minimal, model-appropriate KPI set and set SMART targets off a clear baseline.

• Compute and interpret RPS, user vs session CR, and trial conversion impacts for channel decisions.

• Produce a segmented KPI view that prioritizes the next UX or acquisition fix with measurable impact.