How to select the right KPIs – and why an impact chain to the business goal is crucial

A real-world problem

Let's imagine the following scenario: A SaaS company has just completed a major rebranding. The marketing department now measures over 40 different KPIs – from newsletter open rates to social shares to organic traffic. All values are listed in weekly reports, but no one really knows what they mean. Which measures actually contribute to the target group “IT decision-makers in medium-sized businesses”? And what does the rebranding achieve in terms of acquiring new customers?

The problem: There are too many KPIs – but no connection to strategic goal achievement. The result: a flood of information without any gain in knowledge.

1. Goals first – not KPIs

Before selecting KPIs, it must be clear what specific business goal is to be achieved, i.e., a measurable result that contributes to the development of the company. Based on this, KPIs should be selected that contribute to this business goal.

A good goal meets the following criteria:

• It has a clear impact. Example: “10% more contracts signed in the SME segment.”
• It addresses a specific target group. Example: “Increase repeat purchases by existing customers in Germany, Austria, and Switzerland.”
• It has economic relevance. Example: “Increase average customer lifetime value by 15%.”
• It is linked to a business priority. Example: Growth, retention, efficiency improvement, or profitability

A KPI without a clear target is like a compass without a north – it points to something, but nothing you can strategically build on.

2. All KPIs should be aligned with the target

A particularly effective principle: Each KPI should measure the desired follow-up action of an event that contributes to the business goal.

Example:

1. Touchpoint: Email campaign – KPI: Number of clicks on product page → because that is the desired follow-up action.
2. Touchpoint: Product page – KPI: Number of completed contact forms
3. Key event: Contact form sent – KPI: Number of initial consultations booked

This creates a comprehensible logic: Each KPI is a touchstone for the success of the previous step.

3. Less is more – but with clarity

A common mistake in KPI practice is using too many unclear or redundant KPIs. However, a KPI is not a measuring instrument, but a focusing instrument.

A practical example from the agency business:

A customer wants to know how successful a white paper is. Instead of measuring downloads, time on page, and exit rate, the primary KPI is defined as “number of qualified leads interested in the topic.” This forces the agency not only to create content, but also to link it in such a way that genuine follow-up interest is generated.

A good KPI is:

• targeted
• clearly measurable
• behavior-oriented (aims at concrete follow-up actions)
• time-defined
• clearly communicable within the team

How cosmos solves the KPI problem: impact chains instead of data chaos

From key figures to impact: the KPI Universe

The KPI Universe in cosmos breaks with classic reporting thinking. Instead of simply collecting numbers, cosmos maps every activity in a traceable path to the business goal – as an impact chain.

The central question is: Which activity generates which effect?

Touchpoints and key events: Clear focus with exactly one KPI

Every touchpoint and every key event in the KPI Universe is assigned exactly one KPI – no more, no less. This ensures clarity and prioritization.

Example:

A B2B company visits a trade fair:

1. Touchpoint: Trade fair booth – KPI: Number of qualified leads
2. Key event: Sales call – KPI: Number of product tests booked
3. Touchpoint: Product test – KPI: Number of contracts concluded

This creates a clear chain: Every activity contributes visibly to the goal. The target value (e.g., “50 new customers per quarter”) is made tangible by each upstream stage.

Follow-up action as the basis for KPIs

cosmos doesn't just measure whether an action has taken place – it measures whether it has led to the desired follow-up action. That's the strategic game changer.

Why this is crucial:

• Actions without consequences generate effort without effect.
• The success of a measure is measured by what it sets in motion.

Fun fact: KPI does not necessarily mean “important”

The term key performance indicator suggests relevance. In practice, however, unimportant or distracting data is often declared as KPIs. The origin lies in industrial production, where throughput or scrap rates were clear metrics. In the more complex environment of marketing and sales, however, strategic filtering is required – and that is exactly what the KPI Universe from cosmos offers.

Conclusion: KPIs must show impact – not just numbers

Strategic KPI tracking means defining goals, measuring follow-up actions, and making chains of effects visible. Only this creates focus, controllability, and real insight.

With the KPI Universe from cosmos, you can transform reporting into strategic effectiveness management. All activities, both online and offline, are linked, evaluated, and aligned with the central goal – for each individual target group.

One KPI per touchpoint, one goal per impact chain, maximum clarity.

cosmos is the strategic intelligence platform for anyone who wants impact instead of a jumble of numbers.

Get started with KPI Universe now and lead your team to your business goals with measurable focus.

Try cosmos™ now for free!