{"id":7171,"date":"2024-11-22T12:43:41","date_gmt":"2024-11-22T12:43:41","guid":{"rendered":"https:\/\/resourceguruapp.com\/blog\/?p=7171"},"modified":"2024-12-02T16:21:57","modified_gmt":"2024-12-02T16:21:57","slug":"agency-kpis","status":"publish","type":"post","link":"https:\/\/resourceguruapp.com\/blog\/agencies\/agency-kpis","title":{"rendered":"Understanding agency KPIs: 6 simple steps to unlock growth"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Running a successful agency isn\u2019t just about delivering great work\u2014it\u2019s about knowing how to measure your success. Agency key performance indicators (KPIs) are the handpicked metrics that facilitate that. They give you the insight you need to understand how your agency is performing, and where you can improve.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But with so many data points to track, it\u2019s easy to feel overwhelmed. That\u2019s why we\u2019re breaking down the basics, and will outline <a href=\"https:\/\/resourceguruapp.com\/blog\/agencies\/agency-kpis#6-steps-to-identify-and-maintain-effective-agency-KPIs\">six simple steps<\/a> for understanding <\/span><span style=\"font-weight: 400;\">agency KPIs<\/span><span style=\"font-weight: 400;\"> and leveraging them to unlock growth.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Ready to take your agency successes to the next level? Let\u2019s dive in.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">In this article \ud83d\udcd6<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/resourceguruapp.com\/blog\/agencies\/agency-kpis\/#The-difference-between-metrics-and-KPIs\" >The difference between metrics and KPIs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/resourceguruapp.com\/blog\/agencies\/agency-kpis\/#Why-KPIs-are-important\" >Why KPIs are important<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/resourceguruapp.com\/blog\/agencies\/agency-kpis\/#What-makes-a-good-KPI-vs-a-bad-KPI\" >What makes a good KPI vs. a bad KPI?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/resourceguruapp.com\/blog\/agencies\/agency-kpis\/#6-steps-to-identify-and-maintain-effective-agency-KPIs\" >6 steps to identify and maintain effective agency KPIs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/resourceguruapp.com\/blog\/agencies\/agency-kpis\/#Agency-KPIs-examples-per-agency-type\" >Agency KPIs (examples per agency type)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/resourceguruapp.com\/blog\/agencies\/agency-kpis\/#The-bottom-line-on-KPIs\" >The bottom line on KPIs<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"The-difference-between-metrics-and-KPIs\"><\/span><span style=\"font-weight: 400;\">The difference between metrics and KPIs<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Distinguishing between <a href=\"https:\/\/resourceguruapp.com\/blog\/agencies\/agency-metrics\">metrics<\/a> and KPIs is a must when planning (or adjusting) your agency growth strategies.\u00a0<\/span><\/p>\n<div class=\"callout callout--definition\">\n<h4>What is a metric?<\/h4>\n<p><b>A metric<\/b><span style=\"font-weight: 400;\"> represents anything you can measure and provides <\/span><i><span style=\"font-weight: 400;\">general <\/span><\/i><span style=\"font-weight: 400;\">data about performance.<\/span><\/p>\n<\/div>\n<div class=\"callout callout--definition\">\n<h4>What is a KPI?<\/h4>\n<p><b>A KPI (Key Performance Indicator)<\/b><span style=\"font-weight: 400;\"> is a targeted measure that\u2019s directly tied to your goals and is <\/span><i><span style=\"font-weight: 400;\">unique<\/span><\/i><span style=\"font-weight: 400;\"> to your growth strategy.<\/span><\/p>\n<\/div>\n<h3><span style=\"font-weight: 400;\">Examples of agency metrics vs. <\/span><span style=\"font-weight: 400;\">agency KPIs<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Let\u2019s demonstrate the difference between the two, using examples.<\/span><\/p>\n<ul>\n<li><b>Example goal: <\/b><span style=\"font-weight: 400;\">Increase monthly revenue<\/span><\/li>\n<li><b>Example metric<\/b><span style=\"font-weight: 400;\">: Number of client proposals sent<\/span>\n<ul>\n<li>This metric shows how much energy the agency is putting into getting new business through the door<\/li>\n<li>It gives quantifiable information about how they\u2019re trying to make more money, but it doesn\u2019t directly tell us the impact on their goal to increase monthly revenue<\/li>\n<\/ul>\n<\/li>\n<li><b>Example KPI<\/b><span style=\"font-weight: 400;\">: New client acquisition rate<\/span>\n<ul>\n<li>On the flip side, a specific, targeted measure directly tied to the goal (a.k.a. A KPI) could be new client acquisition rate<\/li>\n<li>If 20% is deemed healthy for the agency, they could use <strong>&#8220;Reach 20% MoM client acquisition&#8221;<\/strong><span style=\"font-weight: 400;\"> as their KPI<\/span><\/li>\n<\/ul>\n<\/li>\n<li><span style=\"font-weight: 400;\"><b>Example KPI formula:<\/b><\/span>\n<ul>\n<li>New client acquisition rate (%) = (Number of new clients acquired in a given period\/Total number of leads in the same period) x 100<\/li>\n<\/ul>\n<\/li>\n<li><strong>Example KPI calculation:<\/strong>\n<ul>\n<li>New client acquisition rate (%) = (10\/50) x 100 = 20%<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\"><div class=\"callout callout--reading\"><\/span><\/p>\n<p><b>Further reading: <\/b><span style=\"font-weight: 400;\">Dive into our <\/span><a href=\"https:\/\/resourceguruapp.com\/blog\/agencies\/agency-metrics\"><span style=\"font-weight: 400;\">agency metrics<\/span><\/a><span style=\"font-weight: 400;\"> article to get your head around core concepts and use cases for each. It can also help you decide which metrics make the most sense to choose as your agency KPIs.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><\/div><\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Why-KPIs-are-important\"><\/span><span style=\"font-weight: 400;\">Why KPIs are important<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span style=\"font-weight: 400;\">They align daily operations with strategic goals\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">KPIs are critical for aligning day-to-day <\/span><a href=\"https:\/\/resourceguruapp.com\/blog\/agencies\/agency-operations\"><span style=\"font-weight: 400;\">agency operations<\/span><\/a><span style=\"font-weight: 400;\"> with long-term strategic goals. They translate broad goals into actionable measures<\/span> <span style=\"font-weight: 400;\">that track progress and success.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">They provide focus\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">KPIs provide focus, create accountability, and boost motivation to achieve specific outcomes.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">They drive performance<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">KPIs<\/span> <span style=\"font-weight: 400;\">help in driving performance by setting clear targets and benchmarks. Good KPIs (<a href=\"https:\/\/resourceguruapp.com\/blog\/agencies\/agency-kpis#What-makes-a-good-KPI-vs-a-bad-KPI\">more on this below<\/a>) ensure that everyone in the agency understands what\u2019s important and how their performance impacts the overall success.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">They enable informed decision-making<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">KPIs offer actionable insights that guide decision-making. By regularly monitoring KPIs, agencies can identify trends, measure effectiveness, and make data-driven decisions to increase profitability.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">They foster transparency and alignment<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">KPIs improve transparency within the agency by providing clear, quantifiable targets and results. They facilitate better communication between teams and management, ensuring that everyone is on the same page regarding performance expectations and outcomes.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"What-makes-a-good-KPI-vs-a-bad-KPI\"><\/span><span style=\"font-weight: 400;\">What makes a good KPI vs. a bad KPI?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">All KPIs aren\u2019t created equal. So how do you distinguish a bad KPI from a good one?\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Good KPIs:<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">\u2705 are directly tied to strategic objectives or specific goals<br \/>\n<\/span><span style=\"font-weight: 400;\">\u2705\u00a0are easy to track and analyze<br \/>\n\u2705 <\/span><span style=\"font-weight: 400;\">provide insights and drive meaningful actions<br \/>\n\u2705 <\/span><span style=\"font-weight: 400;\">enable better (and faster) decision-making<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Bad KPIs:\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">\u274c are unclear, or poorly defined<br \/>\n<\/span><span style=\"font-weight: 400;\">\u274c create confusion<br \/>\n\u274c <\/span><span style=\"font-weight: 400;\">provide little insight into performance or progress<br \/>\n\u274c <\/span><span style=\"font-weight: 400;\">do not lead to actionable insights or decisions<br \/>\n\u274c <\/span><span style=\"font-weight: 400;\">don\u2019t help you achieve a wider goal<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s demonstrate this further with another example below.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Agency KPIs<\/span><span style=\"font-weight: 400;\"> example<\/span><\/h3>\n<div class=\"callout callout--takeaway\">\n<p><b>Example goal: <\/b><span style=\"font-weight: 400;\">Maintain steady revenue levels.<\/span><\/p>\n<p>A good KPI is aligned with the agency\u2019s strategic goals.<\/p>\n<\/div>\n<div class=\"callout callout--takeaway\">\n<p><b>Example of a good KPI: <\/b><span style=\"font-weight: 400;\">\u201cClient retention rate\u201d measures the percentage of clients who continue working with your agency over a given period.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s a KPI that reflects how many <\/span><a href=\"https:\/\/resourceguruapp.com\/blog\/agencies\/client-agency-relationship\"><span style=\"font-weight: 400;\">clients you\u2019re maintaining a positive relationship with<\/span><\/a><span style=\"font-weight: 400;\"> and, subsequently, how much revenue you\u2019re consistently generating by working with them.<\/span><\/p>\n<p>With all that in mind, your specific KPI could be \u201cMaintain a 90% annual client retention rate.\u201d<\/p>\n<\/div>\n<div class=\"callout callout--takeaway\">\n<p><b>Example of a bad KPI:<\/b><span style=\"font-weight: 400;\"> \u201cNumber of leads\u201d is a tempting KPI to use here.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">More leads means steady revenue, right? Not necessarily. Calculating how many leads you have can tell you <\/span><i><span style=\"font-weight: 400;\">something<\/span><\/i><span style=\"font-weight: 400;\"> about your potential revenue, but nothing specific or intrinsically connected.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The number of leads <\/span><i><span style=\"font-weight: 400;\">may<\/span><\/i><span style=\"font-weight: 400;\"> make an impact on revenue levels, but you don\u2019t know how likely those leads are to sign up as clients. You also don\u2019t know how much each lead is worth, meaning it\u2019s not measurable against revenue.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Therefore, it\u2019s too disconnected from the goal of maintaining steady revenue, and a bad KPI.<br \/>\n<\/span><\/div>\u00a0<a href=\"https:\/\/bit.ly\/3X6lT4Q\"><br \/>\n<img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-6582 style=\" src=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2023\/10\/Blog-banner-1-943x242.jpg\" alt=\"A rectangle shaped banner in purple featuring a 3D book cover with a prompt to download an eBook about resource planning for agencies.\" width=\"943\" height=\"242\" srcset=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2023\/10\/Blog-banner-1-943x242.jpg.webp 943w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2023\/10\/Blog-banner-1-1042x268.jpg.webp 1042w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2023\/10\/Blog-banner-1-1536x395.jpg.webp 1536w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2023\/10\/Blog-banner-1-310x80.jpg.webp 310w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2023\/10\/Blog-banner-1.jpg 1836w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2023\/10\/Blog-banner-1-310x80@2x.jpg.webp 620w\" sizes=\"auto, (max-width: 943px) 100vw, 943px\" \/><\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"6-steps-to-identify-and-maintain-effective-agency-KPIs\"><\/span><span style=\"font-weight: 400;\">6 steps to identify and maintain effective <\/span><span style=\"font-weight: 400;\">agency KPIs<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><b>1. Align with your goals:<br \/>\n<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Start by defining what you want to achieve overall for your agency or team, and how KPIs can align with this. Ensure that each KPI has a clear connection to these strategic goals.<\/span><\/p>\n<p><b style=\"font-size: 1.556em;\">2. Set realistic targets:<br \/>\n<\/b><span style=\"font-weight: 400;\">Establish realistic (and attainable) targets for each KPI. Remember, setting overly ambitious KPIs can lead to frustration and demotivation, while targets that are too easy might not drive performance.<\/span><\/p>\n<p><b style=\"font-size: 1.556em;\">3. Use the right tools:<br \/>\n<\/b><span style=\"font-weight: 400;\">Leverage relevant <\/span><a href=\"https:\/\/resourceguruapp.com\/blog\/agencies\/agency-tools\"><span style=\"font-weight: 400;\">agency tools<\/span><\/a><span style=\"font-weight: 400;\"> and <\/span><a href=\"https:\/\/resourceguruapp.com\/blog\/agencies\/agency-software\"><span style=\"font-weight: 400;\">software<\/span><\/a><span style=\"font-weight: 400;\"> to collect, analyze, and visualize KPI data. Start with the reporting features in your resource management and <\/span><a href=\"https:\/\/resourceguruapp.com\/blog\/agencies\/agency-project-management-software\"><span style=\"font-weight: 400;\">project management tools<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><b style=\"font-size: 1.556em;\"><\/b><b style=\"font-size: 1.556em;\">4. Review and adjust:<br \/>\n<\/b><span style=\"font-weight: 400;\">KPIs aren\u2019t a \u201cset it and forget it\u201d type of thing. Regularly review KPI performance and make adjustments as needed. Frequent evaluations help in identifying trends, addressing issues, and refining strategies to stay on track and drive agency growth.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><b style=\"font-size: 1.556em;\">5. Communicate progress:<br \/>\n<\/b><\/span><span style=\"font-weight: 400;\">Ensure that progress is communicated clearly (and on a regular basis) to relevant teams and stakeholders. This type of transparency promotes alignment and accountability across your agency.\u00a0<\/span><\/p>\n<p><b style=\"font-size: 1.556em;\"><\/b><span style=\"font-weight: 400;\"><b style=\"font-size: 1.556em;\">6. Integrate with performance management:<br \/>\n<\/b><\/span><span style=\"font-weight: 400;\">Bring your KPIs into performance management processes, including performance reviews and goal-setting discussions. This ensures that KPIs drive both individual and team performance.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Need a better way to manage your projects and resources? Explore how Resource Guru can revolutionize the process with a 30-day free trial:<\/span><\/p>\n<p>&nbsp;<\/p>\n<div class=\"freetrial freetrial--text-light freetrial--default\"><div class=\"freetrial__image\"><img loading=\"lazy\" decoding=\"async\" width=\"310\" height=\"218\" src=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/02\/free-trial-310x218.png\" class=\"attachment-freetrial size-freetrial wp-post-image\" alt=\"Screenshot of Resource Guru&#039;s resource scheduling platform.\" srcset=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/02\/free-trial-310x218.png 310w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/02\/free-trial.png 708w\" sizes=\"auto, (max-width: 310px) 100vw, 310px\" \/><\/div><div class=\"freetrial__text\"><h4>The #1 scheduling tool trusted by thousands of project teams<\/h4>\n<p>Join thousands of project managers who have made scheduling a breeze.<\/p>\n<p><a class=\"button\" href=\"https:\/\/app.resourceguruapp.com\" target=\"_blank\" rel=\"noopener\">Start Your Free Trial<\/a><\/p>\n<\/div><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Agency-KPIs-examples-per-agency-type\"><\/span><span style=\"font-weight: 400;\">Agency KPIs (examples<\/span><span style=\"font-weight: 400;\"> per agency type)<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">One big factor to consider when choosing your KPIs is the type of services your agency offers. After all, every agency is unique, and therefore needs unique KPIs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To examine <\/span><span style=\"font-weight: 400;\">agency KPIs<\/span><span style=\"font-weight: 400;\"> through the lens of these different agency types, we spoke with <\/span><a href=\"http:\/\/robsayles.com\"><span style=\"font-weight: 400;\">Rob Sayles<\/span><\/a><span style=\"font-weight: 400;\">, agency veteran and seasoned consultant.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In our <\/span><a href=\"https:\/\/resourceguruapp.com\/blog\/agencies\/agency-metrics\"><span style=\"font-weight: 400;\">agency metrics<\/span><\/a><span style=\"font-weight: 400;\"> piece, Rob has shared some revenue related metrics you <\/span><i><span style=\"font-weight: 400;\">could <\/span><\/i><span style=\"font-weight: 400;\">choose for your KPIs. But, to get more specific, he has also shared some example KPIs tailored to the unique characteristics of creative, marketing, digital and PR agencies. You\u2019ll find them below. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">These will help you get a better understanding of <\/span><span style=\"font-weight: 400;\">agency KPIs\u2014both<\/span><span style=\"font-weight: 400;\"> when it comes to your businesses\u2019 success, and that of your clients. After all, happy clients lead to stronger agency performance.\u00a0\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Creative agency KPIs\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">As we\u2019ve said, good KPIs are measurable and tied to a specific goal. Creative agencies\u2019 goals are often aligned with a need to come up with innovative ideas and execute original campaigns. But, at the end of the day, healthy revenue levels is what enables them to keep creating.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With that in mind, here are some revenue-driving KPIs creative agencies should consider:<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">1. Project delivery time variance<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">How fast is your <\/span><a href=\"https:\/\/resourceguruapp.com\/blog\/agencies\/agency-project-management-process\"><span style=\"font-weight: 400;\">project process<\/span><\/a><span style=\"font-weight: 400;\">, from initial onboarding right through to final delivery? Tracking this duration as a KPI helps creative agencies stay accountable, and see if they need to speed up when it comes to getting deliverables over the line.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You can break this down further by comparing your forecasted delivery time with your actual delivery time. By comparing these two durations, you can gauge if you\u2019re meeting your targets and if you need to re-evaluate and refine your project processes if you\u2019re not.\u00a0<\/span><\/p>\n<h4><b>Formulas<\/b><span style=\"font-weight: 400;\">:\u00a0<\/span><\/h4>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-7212 size-medium\" src=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Forecasted-project-deliery-time-943x203.png\" alt=\"How to forecast project delivery time.\" width=\"943\" height=\"203\" srcset=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Forecasted-project-deliery-time-943x203.png.webp 943w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Forecasted-project-deliery-time-1042x224.png.webp 1042w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Forecasted-project-deliery-time-1536x330.png.webp 1536w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Forecasted-project-deliery-time-2048x440.png.webp 2048w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Forecasted-project-deliery-time-310x67.png.webp 310w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Forecasted-project-deliery-time-943x203@2x.png.webp 1886w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Forecasted-project-deliery-time-1042x224@2x.png.webp 2084w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Forecasted-project-deliery-time-1536x330@2x.png.webp 3072w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Forecasted-project-deliery-time-310x67@2x.png.webp 620w\" sizes=\"auto, (max-width: 943px) 100vw, 943px\" \/><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-7213 size-medium\" src=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Actual-project-delivery-time-943x203.png\" alt=\"How to calculate actual project delivery time formula.\" width=\"943\" height=\"203\" srcset=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Actual-project-delivery-time-943x203.png.webp 943w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Actual-project-delivery-time-1042x224.png.webp 1042w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Actual-project-delivery-time-1536x330.png.webp 1536w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Actual-project-delivery-time-2048x440.png.webp 2048w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Actual-project-delivery-time-310x67.png.webp 310w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Actual-project-delivery-time-943x203@2x.png.webp 1886w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Actual-project-delivery-time-1042x224@2x.png.webp 2084w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Actual-project-delivery-time-1536x330@2x.png.webp 3072w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Actual-project-delivery-time-310x67@2x.png.webp 620w\" sizes=\"auto, (max-width: 943px) 100vw, 943px\" \/><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-7211 size-medium\" src=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-project-delivery-time-variance-943x208.png\" alt=\"How to calculate project delivery time variance.\" width=\"943\" height=\"208\" srcset=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-project-delivery-time-variance-943x208.png.webp 943w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-project-delivery-time-variance-1042x230.png.webp 1042w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-project-delivery-time-variance-1536x339.png.webp 1536w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-project-delivery-time-variance-2048x452.png.webp 2048w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-project-delivery-time-variance-310x68.png.webp 310w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-project-delivery-time-variance-943x208@2x.png.webp 1886w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-project-delivery-time-variance-1042x230@2x.png.webp 2084w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-project-delivery-time-variance-1536x339@2x.png.webp 3072w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-project-delivery-time-variance-310x68@2x.png.webp 620w\" sizes=\"auto, (max-width: 943px) 100vw, 943px\" \/><\/p>\n<div class=\"callout callout--definition\">\n<h4><b>Example calculation<\/b><span style=\"font-weight: 400;\">:<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Project delivery time variance <\/span><span style=\"font-weight: 400;\">= (20 working days &#8211; 18 working days) \/ 18 working days) x 100\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Project delivery time variance = [0.111] x 100 = 11%<\/span><\/p>\n<\/div>\n<div class=\"callout callout--definition\">\n<h4><b>Example KPI<\/b><span style=\"font-weight: 400;\">:<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Maintain a &lt;0%<strong>*<\/strong> project delivery time variance<\/span><\/p>\n<\/div>\n<p><b>*Note<\/b><span style=\"font-weight: 400;\">: The numbers in each of our examples may vary from what\u2019s reasonable for your agency. Make sure to tailor the math to match your reality!\u00a0<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">2. Billable utilization rate<\/span><\/h4>\n<p><a href=\"https:\/\/resourceguruapp.com\/blog\/resource-management\/resource-utilization\"><span style=\"font-weight: 400;\">Resource utilization<\/span><\/a><span style=\"font-weight: 400;\"> measures how effectively you\u2019re using all your available resources. These include time, budget, and tools, but the term usually includes staff too\u2014even though we know people are far more valuable than \u201cresource\u201d implies.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">One KPI that can give a better understanding of resource utilization is <\/span><a href=\"https:\/\/resourceguruapp.com\/blog\/time-management\/billable-utilization\"><span style=\"font-weight: 400;\">billable utilization<\/span><\/a><span style=\"font-weight: 400;\">. Creative agencies can use something like this to assess that:\u00a0<\/span><\/p>\n<h4><b>Formula<\/b><span style=\"font-weight: 400;\">:\u00a0<\/span><\/h4>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-7214 size-medium\" src=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/organizational-billable-utilization-rate-formula-943x175.png\" alt=\"Organizational billable utilization rate formula.\" width=\"943\" height=\"175\" srcset=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/organizational-billable-utilization-rate-formula-943x175.png.webp 943w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/organizational-billable-utilization-rate-formula-1042x193.png.webp 1042w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/organizational-billable-utilization-rate-formula-1536x284.png.webp 1536w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/organizational-billable-utilization-rate-formula-2048x379.png.webp 2048w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/organizational-billable-utilization-rate-formula-310x57.png.webp 310w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/organizational-billable-utilization-rate-formula-943x175@2x.png.webp 1886w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/organizational-billable-utilization-rate-formula-1042x193@2x.png.webp 2084w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/organizational-billable-utilization-rate-formula-1536x284@2x.png.webp 3072w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/organizational-billable-utilization-rate-formula-2048x379@2x.png.webp 4096w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/organizational-billable-utilization-rate-formula-310x57@2x.png.webp 620w\" sizes=\"auto, (max-width: 943px) 100vw, 943px\" \/><\/p>\n<div class=\"callout callout--definition\">\n<h4><b>Example calculation<\/b><span style=\"font-weight: 400;\">:\u00a0<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Organizational billable utilization rate (%) = (700\/800) x 100\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Organizational billable utilization rate = 0.875 x 100 = 87.5%\u00a0<\/span><\/p>\n<\/div>\n<div class=\"callout callout--definition\">\n<h4><b>Example KPI<\/b><span style=\"font-weight: 400;\">:\u00a0<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Hit an organizational billable utilization rate of 85%.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This KPI helps you understand if you\u2019re assigning your team to the most valuable tasks, and if you can improve your billable totals, and revenue, as a result.\u00a0<\/span><\/p>\n<\/div>\n<div class=\"callout callout--reading\">\n<p>Need a hand figuring out your billable totals? This <a href=\"https:\/\/resourceguruapp.com\/blog\/time-management\/billable-hours-calculator\">free billable hours calculator<\/a> can help with that.<\/p>\n<p><span style=\"font-weight: 400;\"><\/div><\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Marketing agency KPIs<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">At last count, <\/span><a href=\"https:\/\/clutch.co\/us\/agencies\/digital-marketing\"><span style=\"font-weight: 400;\">there are 33,000+ agencies offering digital marketing services in the US<\/span><\/a><span style=\"font-weight: 400;\">. That\u2019s stiff competition. As such, most marketing agencies have goals around client satisfaction.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By delivering work that\u2019s outstanding by client standards, not only can these agencies retain their existing clients, but they can fend off their competitors who may want to poach their business\u2014and their revenue.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Marketing agencies are fortunate when it comes to KPIs as they are usually concerned with data-driven outcomes. If you\u2019re looking for the most important KPIs to track based on the above goals, these are the standouts:\u00a0<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">1. Campaign ROI<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">This one is maybe obvious when thinking about how to prove your worth to your clients, but being able to show how much money your marketing agency is making for them is truly essential.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That, as well as how specific, measurable, and aligned with the goals we\u2019ve outlined above it is, makes it a great KPI. Here\u2019s how to assess it:<\/span><\/p>\n<h4><b>Formula<\/b><span style=\"font-weight: 400;\">:<\/span><\/h4>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-7215 size-medium\" src=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-campaign-ROI-943x203.png\" alt=\"Campaign ROI formula.\" width=\"943\" height=\"203\" srcset=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-campaign-ROI-943x203.png.webp 943w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-campaign-ROI-1042x224.png.webp 1042w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-campaign-ROI-1536x330.png.webp 1536w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-campaign-ROI-2048x440.png.webp 2048w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-campaign-ROI-310x67.png.webp 310w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-campaign-ROI-943x203@2x.png.webp 1886w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-campaign-ROI-1042x224@2x.png.webp 2084w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-campaign-ROI-1536x330@2x.png.webp 3072w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-campaign-ROI-310x67@2x.png.webp 620w\" sizes=\"auto, (max-width: 943px) 100vw, 943px\" \/><\/p>\n<div class=\"callout callout--definition\">\n<h4><b>Example calculation<\/b><span style=\"font-weight: 400;\">:<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Revenue from campaign = $55,000<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Campaign cost = $25,000<\/span><\/p>\n<p><span style=\"font-weight: 400;\">$55,000 &#8211; $25,000 = $30,000<\/span><\/p>\n<p><span style=\"font-weight: 400;\">$30,000\/$25,000 = 1.2<\/span><\/p>\n<p><span style=\"font-weight: 400;\">1.2 x 100 = <\/span><b>120% campaign ROI<\/b><\/p>\n<\/div>\n<div class=\"callout callout--definition\">\n<h4><b>Example KPI<\/b><span style=\"font-weight: 400;\">:\u00a0<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Achieve marketing campaign ROI of 100%+ for each client.<\/span><\/p>\n<\/div>\n<h4><span style=\"font-weight: 400;\">2. Lead conversion rate<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Feeding into campaign ROI above, you should also keep an eye on the number of leads you generate for clients, and the percentage that convert.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The type of conversions that are most relevant are between you and your client to decide. But, they could be anything from subscribers to customers to folks who commit any other significant action. Here\u2019s how to figure out that KPI:<\/span><\/p>\n<h4><b>Formula<\/b><span style=\"font-weight: 400;\">:<\/span><\/h4>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-7216 size-medium\" src=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-lead-conversion-rate-943x208.png\" alt=\"Lead conversion rate formula.\" width=\"943\" height=\"208\" srcset=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-lead-conversion-rate-943x208.png.webp 943w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-lead-conversion-rate-1042x230.png.webp 1042w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-lead-conversion-rate-1536x339.png.webp 1536w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-lead-conversion-rate-2048x452.png.webp 2048w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-lead-conversion-rate-310x68.png.webp 310w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-lead-conversion-rate-943x208@2x.png.webp 1886w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-lead-conversion-rate-1042x230@2x.png.webp 2084w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-lead-conversion-rate-1536x339@2x.png.webp 3072w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-lead-conversion-rate-310x68@2x.png.webp 620w\" sizes=\"auto, (max-width: 943px) 100vw, 943px\" \/><\/p>\n<div class=\"callout callout--definition\">\n<h4><b>Example calculation<\/b><span style=\"font-weight: 400;\">:<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Lead conversion rate = (670\/1000) x 100 = 67%\u00a0<\/span><\/p>\n<\/div>\n<div class=\"callout callout--definition\">\n<h4><b>Example KPI:<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Achieve a lead conversion rate of 50%+ for [client].<\/span><\/p>\n<\/div>\n<h4><span style=\"font-weight: 400;\">3. Cost of customer acquisition<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Whether you bring in one customer or 1,000,000 for your client, how much you spent on securing each is a vital KPI based on our established goals.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is a great way to justify your spend to clients. It\u2019s a clear indicator that you\u2019re doing your job well, spelled out in numbers, tied to the goals we talked about earlier. That all makes it the definition of a good KPI.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To calculate it\u2014per project, channel, or per campaign\u2014use this process:<\/span><\/p>\n<h4><b>Formula<\/b><span style=\"font-weight: 400;\">:\u00a0<\/span><\/h4>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-7217\" src=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Calculating-CAC-943x225.png\" alt=\"Cost of acquiring a customer formula.\" width=\"943\" height=\"225\" srcset=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Calculating-CAC-943x225.png.webp 943w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Calculating-CAC-1042x248.png.webp 1042w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Calculating-CAC-1536x366.png.webp 1536w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Calculating-CAC-2048x488.png.webp 2048w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Calculating-CAC-310x74.png.webp 310w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Calculating-CAC-943x225@2x.png.webp 1886w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Calculating-CAC-1042x248@2x.png.webp 2084w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Calculating-CAC-1536x366@2x.png.webp 3072w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Calculating-CAC-310x74@2x.png.webp 620w\" sizes=\"auto, (max-width: 943px) 100vw, 943px\" \/><\/p>\n<div class=\"callout callout--definition\">\n<h4><b>Example calculation<\/b><span style=\"font-weight: 400;\">:<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Average CAC = $4,000\/50 = $80\u00a0<\/span><\/p>\n<\/div>\n<div class=\"callout callout--definition\">\n<h4><b>Example KPI<\/b><span style=\"font-weight: 400;\">:\u00a0<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Achieve an average CAC of &lt;$100.\u00a0<\/span><\/p>\n<\/div>\n<h3><span style=\"font-weight: 400;\">Digital agency KPIs\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Like marketing agencies, digital agencies who deliver services like web design and ecommerce management are often deep in the data. As such, crunching KPIs may feel more natural than at other types of agencies.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Just like marketing agencies, they also face a lot of competition when it comes to securing client contracts and the revenue that goes with them. So, objectively proving how their services benefit their clients is often a core goal.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Somewhat uniquely though, digital agencies often work on a project basis, rather than a retainer basis. This can make cash flow less predictable than at other kinds of agencies. Addressing that difficulty is a common goal at digital agencies as a result.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With those goals in mind, here are some KPIs you may consider if you\u2019re working in digital:\u00a0<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">1. User engagement rate<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">When clients ask for an ecommerce store or a website build, one of the most important indicators of success for them is how users interact with it.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">User engagement rate takes two metrics into account\u2014total engaged users and total users. Because it directly relates to the goals we\u2019ve identified above, and it\u2019s highly measurable and specific, it\u2019s a great KPI to start with at a digital agency.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here\u2019s how to figure it out:\u00a0<\/span><\/p>\n<h4><b>Formula<\/b><span style=\"font-weight: 400;\">:\u00a0<\/span><\/h4>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-7218 size-medium\" src=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-engagement-rate-943x208.png\" alt=\"User engagement rate formula.\" width=\"943\" height=\"208\" srcset=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-engagement-rate-943x208.png.webp 943w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-engagement-rate-1042x230.png.webp 1042w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-engagement-rate-1536x339.png.webp 1536w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-engagement-rate-2048x452.png.webp 2048w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-engagement-rate-310x68.png.webp 310w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-engagement-rate-943x208@2x.png.webp 1886w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-engagement-rate-1042x230@2x.png.webp 2084w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-engagement-rate-1536x339@2x.png.webp 3072w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-engagement-rate-310x68@2x.png.webp 620w\" sizes=\"auto, (max-width: 943px) 100vw, 943px\" \/><\/p>\n<div class=\"callout callout--definition\">\n<h4><b>Example calculation*<\/b><span style=\"font-weight: 400;\">:\u00a0<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Total users = 10,000<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Engaged users = 2,500<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Engagement rate = (2,500\/10,000) x 100 = 25%<\/span><\/p>\n<\/div>\n<p><span style=\"font-weight: 400;\">*<\/span><b>Note<\/b><span style=\"font-weight: 400;\">: Before calculating this formula, you\u2019ll need to agree on the definition of \u201cengaged\u201d with your client. For example, you might agree that someone is engaged if they visit three or more website pages, or if they spend two or more minutes on the site. Regardless, once you have that definition, you can find the value you need to plug into this calculation.\u00a0<\/span><\/p>\n<div class=\"callout callout--definition\">\n<h4><b>Example KPI<\/b><span style=\"font-weight: 400;\">:\u00a0<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Secure an average engagement rate of 25%+ in the first six months of the site being live.<\/span><\/p>\n<\/div>\n<h4><span style=\"font-weight: 400;\">2. Client retention rate<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">While this is applicable to all the agency types we mention in this article, client retention rate is a particularly important KPI for digital agencies, as we\u2019ve said.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Given the traditional \u201cone-and-done\u201d nature of website builds, client retention isn\u2019t always high at these types of agencies. As such, to get a sense of the health of the agency, this rate should be monitored closely using a method like this:\u00a0<\/span><\/p>\n<h4><b>Formula<\/b><span style=\"font-weight: 400;\">:<\/span><\/h4>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-7219\" src=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-client-retention-rate-943x265.png\" alt=\"Client retention rate formula.\" width=\"943\" height=\"265\" srcset=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-client-retention-rate-943x265.png.webp 943w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-client-retention-rate-1042x293.png.webp 1042w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-client-retention-rate-1536x431.png.webp 1536w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-client-retention-rate-2048x575.png.webp 2048w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-client-retention-rate-310x87.png.webp 310w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-client-retention-rate-943x265@2x.png.webp 1886w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-client-retention-rate-1042x293@2x.png.webp 2084w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-client-retention-rate-1536x431@2x.png.webp 3072w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/calculating-client-retention-rate-310x87@2x.png.webp 620w\" sizes=\"auto, (max-width: 943px) 100vw, 943px\" \/><\/p>\n<div class=\"callout callout--definition\">\n<h4><b>Example calculation<\/b><span style=\"font-weight: 400;\">:\u00a0<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Client retention rate = (1,500 &#8211; 550) \/ 1,500 x 100 = 63%<\/span><\/p>\n<\/div>\n<div class=\"callout callout--definition\">\n<h4><b>Example KPI<\/b><span style=\"font-weight: 400;\">:\u00a0<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Achieve a client retention rate of at least 60% MoM.<\/span><\/p>\n<\/div>\n<h3><span style=\"font-weight: 400;\">KPIs for PR agencies<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">PR\u2019s traditionally seen as notoriously hard to measure in terms of success. However, there are steps you can use to create numerical KPIs for your PR agency.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For this agency type, we\u2019ll also be speaking to KPIs that reflect the agency\u2019s effectiveness when it comes to creating impactful work for their clients, justifying what the average client spends on their services.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The typical PR agency goals these address include increasing client profiles, and maintaining or elevating client reputation.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These are some of the best KPIs to track with those goals in mind:\u00a0<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">1. Media mentions<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">This is a great example of a strong PR agency KPI, and there are plenty of media mention monitors on the market to help track the data you\u2019ll need to compile that KPI.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In order to report on the significance of media mentions in a compelling way for clients, it\u2019s important to not only state how many mentions your PR agency secures, but also the quality.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Like an example in our <\/span><span style=\"font-weight: 400;\">digital agency KPIs<\/span><span style=\"font-weight: 400;\"> section, this is a compound KPI that takes multiple metrics into account. Here\u2019s how you can report on it:\u00a0<\/span><\/p>\n<h4><b>Formula<\/b><span style=\"font-weight: 400;\">:\u00a0<\/span><\/h4>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-7220\" src=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Calculating-media-mentions-quality-1-943x176.png\" alt=\"Media mentions quality formula.\" width=\"943\" height=\"176\" srcset=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Calculating-media-mentions-quality-1-943x176.png.webp 943w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Calculating-media-mentions-quality-1-1042x195.png.webp 1042w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Calculating-media-mentions-quality-1-1536x287.png.webp 1536w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Calculating-media-mentions-quality-1-2048x383.png.webp 2048w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Calculating-media-mentions-quality-1-310x58.png.webp 310w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Calculating-media-mentions-quality-1-943x176@2x.png.webp 1886w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Calculating-media-mentions-quality-1-1042x195@2x.png.webp 2084w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Calculating-media-mentions-quality-1-1536x287@2x.png.webp 3072w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Calculating-media-mentions-quality-1-310x58@2x.png.webp 620w\" sizes=\"auto, (max-width: 943px) 100vw, 943px\" \/><\/p>\n<div class=\"callout callout--definition\">\n<p><b>Example calculation<\/b><span style=\"font-weight: 400;\">:\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For each of the four metrics used to calculate this <\/span><span style=\"font-weight: 400;\">KPI for PR agencies<\/span><span style=\"font-weight: 400;\">, you\u2019ll need to assign a weight.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Volume score is the count of total mentions during the evaluation period.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In terms of\u00a0 weight, assign 1 point per mention.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Reach score is the total audience size exposed to the mentions (e.g., readership, viewership, social media followers, etc.) To give it a weight, calculate 1 point for every 10,000 users reached.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Sentiment score categorizes mentions as positive, neutral, or negative and assigns points. For a positive mention, add 2 points. For a neutral one, 0 points. For a negative one, -1 point.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Engagement score measures how much interaction mentions generate (e.g., shares, likes, comments). Assign 1 point per 100 engagements.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Suppose an agency tracks media mentions for a campaign over a month and collects the following data:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Volume: 30 mentions<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Reach: 200,000 total audience<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Sentiment: 20 positive mentions, 8 neutral, 2 negative<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Engagement: 5,000 total interactions across platforms<\/span><\/p>\n<p><span style=\"font-weight: 400;\">First, calculate the scores:\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Volume Score: 30 \u00d7 1 = 30<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Reach Score: 200,000\/10,000 \u00d7 1 = 20<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Sentiment Score: (20 \u00d7 2) + (8 \u00d7 0) + (2 \u00d7 -1) = 40 \u2212 2 = 38<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Engagement Score: 5,000\/100 x 1 = 50<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Then, add the scores together:\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Media mentions quality\u00a0 = 30 + 20 + 38 + 50 = 138<\/span><\/p>\n<\/div>\n<div class=\"callout callout--definition\">\n<p><b>Example KPI<\/b><span style=\"font-weight: 400;\">:\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Achieve a media mentions quality of 140 or above.<\/span><\/p>\n<\/div>\n<h4><span style=\"font-weight: 400;\">2. Crisis response time<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">No matter how busy your agency gets, there\u2019s a \u201ccrisis\u201d and then there\u2019s a \u201c<\/span><i><span style=\"font-weight: 400;\">crisis<\/span><\/i><span style=\"font-weight: 400;\">\u201d\u2014a media crisis. Think negative press on a client, social media backlash, or a product or service outage. One KPI for PR agencies is their crisis response time, i.e. how quickly they can react to issues like that.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While you can\u2019t always be the first to know when a crisis arises, you can be prompt in reacting, and accountable for the same.\u00a0 To calculate crisis response time based on the factors you <\/span><i><span style=\"font-weight: 400;\">can<\/span><\/i><span style=\"font-weight: 400;\"> control, simply use this formula:\u00a0<\/span><\/p>\n<h4><b>Formula<\/b><span style=\"font-weight: 400;\">:\u00a0<\/span><\/h4>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-7221\" src=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Calculating-crisis-response-time-943x203.png\" alt=\"Crisis response time formula.\" width=\"943\" height=\"203\" srcset=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Calculating-crisis-response-time-943x203.png.webp 943w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Calculating-crisis-response-time-1042x224.png.webp 1042w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Calculating-crisis-response-time-1536x330.png.webp 1536w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Calculating-crisis-response-time-2048x440.png.webp 2048w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Calculating-crisis-response-time-310x67.png.webp 310w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Calculating-crisis-response-time-943x203@2x.png.webp 1886w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Calculating-crisis-response-time-1042x224@2x.png.webp 2084w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Calculating-crisis-response-time-1536x330@2x.png.webp 3072w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/11\/Calculating-crisis-response-time-310x67@2x.png.webp 620w\" sizes=\"auto, (max-width: 943px) 100vw, 943px\" \/><\/p>\n<div class=\"callout callout--definition\">\n<h4><b>Example calculation<\/b><span style=\"font-weight: 400;\">:\u00a0<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Crisis response time = 3:15PM &#8211; 2PM = 1 hour 15 minutes\u00a0<\/span><\/p>\n<\/div>\n<div class=\"callout callout--definition\">\n<h4><b>Example KPI<\/b><span style=\"font-weight: 400;\">:\u00a0<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Achieve a response crisis response time of 2 hours or less.<\/span><\/p>\n<\/div>\n<h2><span class=\"ez-toc-section\" id=\"The-bottom-line-on-KPIs\"><\/span><span style=\"font-weight: 400;\">The bottom line on KPIs<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">You can&#8217;t know you&#8217;re making an impact without knowing what success looks like. KPIs are a valuable tool for providing insight into both your agency\u2019s internal performance, and your external performance for clients.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By focusing on KPIs like resource utilization, client satisfaction, project delivery time, and client retention rate, agencies can figure out what they\u2019re doing well, and what they could be doing better.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That said, effectively tracking and optimizing these KPIs requires the right tools\u2014especially when it comes to managing team availability and project timelines.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is where Resource Guru comes in. With features designed to streamline resource scheduling, optimize workloads, and improve project efficiency, Resource Guru can help you stay on top of related KPIs with ease.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Resource Guru empowers agencies to allocate resources intelligently, deliver projects on time, all while preventing team burnout.<\/span><\/p>\n<p><b>Get a free trial of Resource Guru today<\/b><span style=\"font-weight: 400;\"> to see how it can support your agency in hitting your KPIs and setting the foundation for long-term success:<\/span><\/p>\n<div class=\"freetrial freetrial--text-light freetrial--alt\"><div class=\"freetrial__image\"><img loading=\"lazy\" decoding=\"async\" width=\"310\" height=\"286\" src=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/02\/free-trial-alt-310x286.png\" class=\"attachment-freetrial size-freetrial wp-post-image\" alt=\"\" srcset=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/02\/free-trial-alt-310x286.png 310w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/02\/free-trial-alt.png 536w\" sizes=\"auto, (max-width: 310px) 100vw, 310px\" \/><\/div><div class=\"freetrial__text\"><h4>The #1 scheduling and time tracking tool trusted by thousands of project teams<\/h4>\n<p>Join thousands of project managers who have made scheduling a breeze.<\/p>\n<p><a class=\"button\" href=\"https:\/\/app.resourceguruapp.com\/\" rel=\"noopener\">Start Your Free Trial<\/a><\/p>\n<\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Running a successful agency isn\u2019t just about delivering great work\u2014it\u2019s about knowing how to measure your success. Agency key performance indicators (KPIs) are the handpicked metrics that facilitate that. They give you the insight you need&hellip;<\/p>\n","protected":false},"author":36,"featured_media":7185,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","mc4wp_mailchimp_campaign":[],"footnotes":""},"categories":[55],"tags":[],"class_list":["post-7171","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-agencies"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Agency KPIs: 6 steps to unlock growth (with examples)<\/title>\n<meta name=\"description\" content=\"Get clarity on the best ways to understand agency KPIs and gauge success with this in-depth analysis.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/resourceguruapp.com\/blog\/agencies\/agency-kpis\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Agency KPIs: 6 steps to unlock growth (with examples)\" \/>\n<meta property=\"og:description\" content=\"Get clarity on the best ways to understand agency KPIs and gauge success with this in-depth analysis.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/resourceguruapp.com\/blog\/agencies\/agency-kpis\" \/>\n<meta property=\"og:site_name\" content=\"Work Life Balance Blog | Resource Guru\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/ResourceGuru\" \/>\n<meta property=\"article:published_time\" content=\"2024-11-22T12:43:41+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-12-02T16:21:57+00:00\" \/>\n<meta property=\"og:image\" 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