Top Digital Transformation KPIs You Need to Track in 2025 and Beyond

Though businesses today are investing more money than ever before in digital transformation—it is anticipated that global investment will reach $3.9 trillion by 2027—the grim truth is that only around one-third of these programs are deemed effective. 

Here’s the sobering truth: throwing money at digital transformation without precise measurement is like navigating in the dark. Before beginning transformation initiatives, companies that effectively define the outcome have a  3.5-fold higher chance of success.   

The difference between digital transformation success and failure isn’t the size of your budget—it’s the intelligence of your measurement strategy. To make sure you’re headed in the right direction, you need to set and track the appropriate digital transformation KPIs. 

Some of the insights shared in this blog are takeaways from a webinar featuring Malay Shah, Former Chief Growth Officer at LeadSquared. Shah shares his thoughts on digital transformation KPIs, among other things. With over two decades of experience in management consulting, he has held leadership roles at firms like EY, McKinsey, and Infosys. His expertise lies in large scale digital transformation and crafting go-to-market strategies that deliver measurable impact. In this session, he breaks down the most crucial KPIs for tracking the success of digital transformation in the following functions: 

• Customer Experience 

• Operational Modernization 

• Business Model Innovation 

You can watch the webinar below or save time with our condensed takeaways that cover all the key points.  

Note: While not all points originate from the session, several key observations do. Additional insights have been included to reflect current trends and best practices, offering a more up-to-date view of the landscape. 

Digital Transformation KPIs

1. Customer Experience

Customer experience is emerging as a crucial brand differentiator and is likely to surpass pricing and product in the near future. Whether interacting with brands online or in person, consumers anticipate a seamless and consistent experience across all touchpoints. 

There were 806 million internet users in India at the start of 2025, accounting for 55.3% of the country’s population – and this number continues to grow.   

This makes it essential for companies to prioritize exceptional digital experiences, starting with a clear understanding of how consumers engage with their brand online. 

Defining the customer journey 

A typical customer journey begins when potential customers learn about your brand and continues all the way through to becoming loyal customers – or even brand advocates. In B2C, this journey has four defining characteristics: 

1. First, it is truly omnichannel. Customers can engage or make a purchase through any channel – be it a website, a social media post, or a call. But the important point to note is – the entire lifecycle is omnichannel. For example, a conversation that begins on a call might seamlessly conclude on your website.  
    

2. Brands focus on high-volume sales. Instead of measuring success year-on-year, most B2C businesses track month-on-month growth. The emphasis is on rapid scale and consistent momentum.  
    

3. B2C is a high-velocity environment. Timing is critical. The deal is likely gone if you’re not able to engage the prospect quickly. For example, consider travel insurance. If you’re not able to connect and engage with the prospect within 24 hours, they may have already left for their destination, and the window to convert is closed.  
    

4. Customer journeys are becoming more autonomous. Consumers today like to research, compare, evaluate, and decide on their own terms. Before contacting you or making a purchase, they might engage with your business several times, frequently jumping between platforms and devices. This implies that your online presence should facilitate decision-making, conversion, and discovery without constantly depending on direct participation. 

This makes responsiveness vital to delivering great customer experiences. To boost engagement, ensure you’re present across all possible touchpoints. Just as important, your team must respond promptly to queries from every channel. 

Below is an illustrative B2C customer journey, complete with definitive steps and KPIs to track at each step. 

Here are some of the leading indicators that reflect how strong and effective that digital presence really is: 

Digital traffic metrics: 

It’s critical to concentrate on metrics that demonstrate whether you’re successfully increasing visibility, engagement, and lead generation when assessing the performance of your digital platforms. Important areas to monitor are: 

1. Search Engine Metrics 

• Domain Authority & Visibility Scores: Comprehensive visibility and authority metrics are provided by tools such as SimilarWeb, Ahrefs, and SEMRush. 

• Average Keyword Rankings: Monitor the evolution of your content’s position for important keywords. 

• Backlink Volume & Quality: Use tools like Ahrefs, Majestic, or SEMRush to evaluate inbound link strength and referring domains. 

• Search Traffic Volume: Use Google Search Console, SEMRush, or Ahrefs to quantify the volume of traffic that comes from organic searches. 

• Presence in AI Overviews (such as Google’s AI Overviews/Search Generative Experience): AI-generated replies are beginning to be tracked by tools like AlsoAsked, BrightEdge, and more recent features in SEMRush and Surfer SEO. As search behavior changes, this becomes more and more crucial. 

2. Website Performance Metrics 

• Impressions & Clicks: Monitor the frequency with which your website shows up and is clicked in search results using Google Search Console and Google Analytics 4 (GA4). 

• GA4’s core metrics—visits, page views, and session duration—show how users engage with your website. 

• Downloads & Sign-Ups: Use your website or CRM integration to keep track of form submissions, downloads, or trial activations. 

• Subscriber Growth: Track platform or newsletter subscription rates, if at all possible, broken down by acquisition source. 
   

3. Lead Metrics 

• Lead Volume: The sum of the qualified leads for each time frame. 

• Leads by Channel: Use GA4 and CRM platforms like LeadSquared to break down leads by traffic source (bought advertisements, social media, organic search, referrals, etc.). 

• Conversion Rate by Channel: Determine which channels effectively convert in addition to generating traffic. 

When you measure these metrics, try to figure out if you’re able to move the needle on a month-on-month basis, and in some cases, on a week-on-week basis. 

Also, there will be several other brands offering similar products and targeting the same set of audiences. Therefore, building your digital presence becomes even more crucial. 

Once you’ve built the traffic, the next thing you should do is measure the quality of traffic. That is, measure the quality of engagement you get from your consumers on those digital assets. 

Customer engagement metrics: 
 

Customer engagement in today’s digital world extends well beyond simple clicks and visits. Real-time feedback, community involvement, content interaction, and retention are all aspects of multifaceted engagement. Here’s how to track it: 

1. Duration and Depth of Engagement 

• A more detailed picture than merely time on site can be obtained via the average session duration, scroll depth, and engagement rate (accessible through tools like Google Analytics 4, Microsoft Clarity, Mixpanel, or Hotjar). 

• Tools such as Firebase Analytics can display screen flow paths and in-app session time on mobile apps to gauge user engagement levels. 

2. Audience Growth and Quality 

• Use tools like LeadSquared (Marketing Automation), Mailchimp, or HubSpot to monitor your email list health (open rate, click-through rate, and unsubscribe rate) in addition to raw sign-ups and followers. 

• Sort traffic into cold, warm, and hot categories using segmentation tools (such as GA4 Audiences or Meta Ads Manager) and adjust engagement accordingly. 

3. Behavioral Scoring & Community Involvement 

• Lead scores are assigned based on user behavior, intent, and recency.  

• Tools like LeadSquared or Marketo can be used for this. 

• Monitor Product Qualified Leads (PQLs) or the Customer Engagement Index (CEI) based on interactions during webinars, support chats, and product tours. 

• You can keep an eye on postings, replies, activity, and community sentiment using community tools like Slack, Circle, and Discourse. 

4. Social & Sentiment Feedback 

• With the use of tools like Sprout Social, Brandwatch, or Hootsuite, track engagement rate by reach, sentiment analysis, and comment quality rather than just likes and shares. 

Engaged customers are more likely to convert. But most cart abandonment happens at the point of sale. So, you must track all the stages of the sales funnel and identify conversion rates at each step. Here are some of the metrics to measure conversions. 

Conversion metrics: 

1. Click-Through Rates (CTR) at Every Stage of the Funnel 

• Throughout the customer journey, track CTR not only at the ad level but also at the mid-funnel (email sequences, landing pages), awareness (paid campaigns, organic social media), and conversion points (pricing pages, checkout, or sign-up forms). 

2. Qualified Engagements: Trials, Demos, and Appointments 

• Remember that scheduled meetings, commenced free trials, or planned product demos are frequently more powerful buying signals than merely submitting a form. 

• Tools that track the conversion from click to confirmed appointment, such as FloStack by LeadSquared, Calendly, Chili Piper, and Drift, can also integrate with CRM systems to provide full-funnel visibility. 

3. Sign-Ups and Subscriptions 

• Measure both volume and quality: Are users signing up for free plans, paid subscriptions, or newsletter opt-ins? 

• Platforms like Mixpanel, Amplitude, and Stripe offer granular tracking of subscription flows, conversion rates by channel, and drop-off points. 

4. Performance & ROI Metrics 

Go beyond vanity metrics with performance-based KPIs: 

• Cost per Click (CPC) 

• Cost per Lead (CPL) 

• Cost per Acquisition (CPA) 

• Return on Marketing Investment (ROMI) 

For holistic ROI tracking, integrate ad platforms with CRM tools (e.g., LeadSquared, HubSpot, Salesforce) and analytics platforms (e.g., GA4). 

If you don’t measure the revenue generated from your digital channels, your transformation efforts risk becoming superficial and lacking true business impact. 

Note that digital does not have to give you just an additional revenue stream. But it has to build an economy that’s differentiated. That’s why your cost per click, cost per lead, and customer acquisition cost on digital channels have to be less than the traditional ones. That is, you should be able to realize a much higher return on marketing investment through digital. 

It is one thing to acquire a customer, and another to retain. Once you’ve won the customer, retention becomes the next most important factor in your digital customer journey, as it signifies the value they get from your offering. 

Customer retention metrics: 

1. Engagement Drop-Off: Bounce, Churn, Uninstalls, Unsubscribes 

• Although bounce rate is still important, tools like Hotjar, Microsoft Clarity, and FullStory use session replays, heatmaps, and scroll monitoring to assist determine why users depart. 

• You can use tools like Mixpanel, CleverTap, or Firebase Analytics to monitor retention curves and uninstalls of mobile apps. 

• Use LeadSquared, Klaviyo, Mailchimp, or Customer.io to track email unsubscribe rates and inactivity patterns, then adjust re-engagement flows as necessary. 
   

2. Recurring Revenue Metrics 

• Two essential SaaS metrics are ARR (Annual Recurring Revenue) and MRR (Monthly Recurring Revenue). Revenue growth, contraction, and expansion may be easily tracked with tools like ChartMogul, Baremetrics, and ProfitWell. 

• The percentage of lost customers is measured by Lost Churn (also known as Logo Churn), which is useful for monitoring account-based retention. 

• Revenue Churn takes one step further by displaying the amount of recurring revenue that you lose due to cancellations or downgrades, even if the number of customers remains constant. 
   
  Next, when your happy customers become your advocates and are willing to spread a good word about your brand, you know your product, sales, and marketing strategies are effective. In this case, you can track the following metrics. 

Promoters metrics: 

1. Net promoter score/NSAT or customer satisfaction rating 
2. Cross-sell/upsell percentage, LTV 
3. ARPA (Average Revenue Per Account) 

The above metrics will help you understand if your business is moving in the right direction – from a customer experience standpoint. 

Next, we move on to the operational metrics to determine if you’re on track for sustainable economics. 

2. Operational Modernization 

Your business spans multiple universes—sales teams chasing targets, marketing crafting campaigns, customer service solving problems, operations keeping the wheels turning. Here’s the reality check: an estimated 90% of organizations are now undergoing some form of digital transformation, but only the smart ones understand what this actually means. 

Digital transformation isn’t about replacing your people with robots—it’s about giving your team superpowers. The key? It automates repetitive, low-value tasks so your people can focus on work that truly matters. 

Below are some of the metrics that you should track to measure your sales effectiveness. 

Sales operations KPIs: 

1. Revenue per Sales FTE 

• Measures efficiency and productivity per rep. 

• Use tools like LeadSquared or HubSpot Sales Analytics to segment revenue by rep, team, or region. 

• Combine quota attainment and pipeline contribution to assess individual impact. 

2. Cost per Demo, Visit, or Call 

• Modern sales orgs track cost per meaningful interaction, not just leads or MQLs. 

• Use LeadSquared, Outreach, Salesloft, or Apollo to track rep activity and layer on cost data from CRM + finance tools (e.g., QuickBooks, NetSuite, Xero) to calculate per-touch economics. 

3. CAC, LTV:CAC Ratio, Bessemer Efficiency Ratio 

• Customer Acquisition Cost (CAC) is essential, but combining it with Lifetime Value (LTV) reveals true ROI. 

• Tools like ProfitWell, ChartMogul, or Baremetrics can calculate CAC, LTV, and the Bessemer Efficiency Ratio (Net New ARR / Net Burn) to assess growth-stage health. 

• These are especially critical in investor reporting and SaaS valuation. 

4. Average Time Spent on Lead Activity 

• Track how much time reps spend on outreach, qualification, follow-up, and meetings. 

• Tools like LeadSquared, Gong, and Clari offer activity-level analytics tied to lead stage and rep behavior. 

• Helps identify bottlenecks and coach reps more effectively. 

5. AR Aging & Payment Cycles 

• Track Accounts Receivable (AR) Aging to monitor cash flow health and identify slow-paying accounts. 

• Use ERP systems like NetSuite, SAP, or Zoho Books, and connect them with CRM data to forecast revenue collection timelines. 

Metrics like revenue per sales rep, cost per demo, etc. will depend on a number of factors. For instance, type of sales (field or inside sales), marketing channels, etc. But there are standard methods of calculating CAC, Bessemer ratio, as described below. 

You can find CAC by dividing all costs associated with acquiring new customers by the number of new customers acquired during the period in question. 

For example, if you spend $1000 on marketing and sales and acquired 1000 customers, your CAC will be $1.00 during this time. 

The Bessemer CAC Ratio is mostly applicable to subscription-based products. It tells you how quickly your gross margin covers your new CAC. 

Where ACV is the annual contract value and Gross margin is a company’s net sales revenue minus its cost of goods sold. 

• A ratio of 1.0 means you will break even on a customer in one year.  
• Break-even is paying your gross expenses as well as the costs of acquiring new customers. 

To measure LTV, you can use the following formula. LTV (Lifetime Value) represents the total revenue a customer is expected to generate during their relationship with your business. It should be higher than your CAC (Customer Acquisition Cost), indicating that your sales and marketing efforts are profitable and efficient. 

To improve your sales operations, assess the processes you can improve with automation. For instance, LeadSquared’s automation for sales and marketing departments can help you with: 

1. Lead Capture and Distribution

This is to automatically capture and assign leads to the right sales rep. The software segregates them based on our chosen criteria, such as region, language, expertise, and more. 

2. Automatic follow-up notifications

This is to send notifications to sales reps whenever a lead enters the funnel. This way, they can respond to them faster and get higher chances of winning the deal. 

3. Lead activity tracking

Activity tracking helps gauge the prospect’s interest in the product/service and prioritize accordingly. By assigning a specific score to a lead, sales reps can focus on the most active ones and reach out to them first.  

4. Reports and analytics

Automated reports on every lead’s activities help figure out what method of marketing works best, whether there are any gaps in the sales funnel that need fixing, what your sales reps are doing right and wrong, and so on. There are over a hundred ready-to-use automated reports available in LeadSquared CRM.  

Now, if you look at the core operations, the following metrics can help. 

Core operational metrics:

1. Time to onboard a customer
2. Order management cycle time and stages
3. Support costs as % of revenue
4. Cost per order

Want to dive deeper into operational KPIs based on your industry?

Read this: Operational KPIs Across Industries: Essential Metrics For 2025.  

Next are the supply chain metrics.

Supply chain metrics:

1. Cost to fulfill an order
2. Number of lines auto planned
3. Days of inventory

From a back-office perspective, you can consider the following financial metrics.

Finance metrics:

1. General and Administrative (G&A) costs as % of revenue
2. Days of closing your books (on a monthly/quarterly basis)
3. PSAT or partner satisfaction (vendor satisfaction)
3. Error %

Also, HR metrics are important when you consider overall operations in your organization.

HR metrics:

1. Time to onboard an employee
2. Revenue per FTE
3. Attrition percentage
4. ESAT or Employee satisfaction

Note that depending on the industry, the metrics may vary for organizations.

Next, let’s move on to Business Model Innovation.

3. Business Model Innovation

The ultimate test of your digital transformation isn’t just operational efficiency—it’s whether you can turn technology into a profit engine. The question that should keep every executive awake at night: Can we use digital innovation to create entirely new revenue streams that didn’t exist before? 

Create a business model that allows innovative products to shine. At the same time, find new ways to increase revenue and decrease time spent working. 

In terms of business model innovation, here are some KPIs: 

Business Model Innovation KPIs: 

Sales model innovation:

1. Revenue from new products, offerings, and services
2. Revenue from new channels
3. Revenue from new partnerships

New product introduction:

1. Rate of new product introduction or the pace of innovation
2. Number of epics, story-points, user stories
3. R&D cost as % of revenue

Design and engineering:

1. Cost of poor quality
2. MTTR (Mean time to repair), MTBF (mean time between failure)
3. Percentage security or performance incidents

Platform:

1. Cloud and mobile readiness
2. Platform elegance
3. Platform agility
4. Platform resilience
5. Technical debt

By tracking these metrics, you gain a clearer picture of how digital initiatives translate to tangible business results, ensuring your innovation efforts are both measurable and meaningful. 

Implementing a Formal KPI Program for Your Digital Transformation Journey

Most organizations lack a formal method of tracking KPIs – leaving the digital transformation program unattended. The first thing you can do to take a calculative approach in this pursuit is – define the key performance indicators that matter most to your business. After this, have a crystal-clear definition of KPIs. For example, there can be several nuances when you track even simple metrics such as cost per lead. It will depend on the channel, such as Pay Per Click Ads, sales prospecting methods, customer referrals, or other marketing channels. Therefore, be clear in what you want to measure and how you want to measure. Then, strengthen your business case by establishing: 

• A baseline for KPIs – determine the starting point 

• Targets using industry benchmarking 

• Formal accountability for targets 

• Tracking mechanism (review process and automated reporting) 

Leveraging Analytics Tools for Effective Measurement 

Once your KPIs are clearly defined, robust analytics tools become indispensable in tracking your progress and surfacing actionable insights. With the right analytics platform—think Google Analytics, Tableau, or Power BI—you can automatically collect, organize, and visualize data from a variety of sources without burdening teams with manual reporting. 

You could also use LeadSquared’s SIERA— it simplifies creating and sharing custom business reports, so you spend less time generating data and more time driving results. 

A well-implemented analytics system empowers you to: 

• Monitor KPI trends in real time, enabling timely adjustments to strategy 

• Automate recurring reports, making your review process consistent and efficient 

• Set up custom dashboards for quick access to performance metrics relevant to specific teams or leadership 

• Drill down into user behaviors, internal process bottlenecks, and operational roadblocks to pinpoint improvement areas 

Decide how often you’ll review performance—whether it’s daily progress dashboards for critical initiatives or monthly deep-dives for executive overviews. The aim: ensure that your measurement practices are agile enough to inform decisions, optimize tactics, and keep your digital transformation momentum alive. 

By integrating advanced analytics into your transformation efforts, you’ll gain the clarity needed to iterate quickly, celebrate wins, and course-correct where necessary—all while minimizing manual errors and freeing up your team for higher-value initiatives.

Automate It 

Manual data collection and reporting on a daily or weekly basis increases the chances of the program failing. That is why you should have an automated reporting mechanism in place when you start digitizing your processes. You should also expand the metrics list influenced by the program design.  

If you’re looking for a platform that helps execute high-velocity sales and excels at measurement, reach out to LeadSquared! Not only does the LeadSquared CRM provide you with tools to measure your growth but it also helps digitize existing processes. 

FAQs on Digital Transformation KPIs