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  • Writer's pictureChristina Tsiripidou

10 Demand Generation Metrics You Need to Measure for Marketing Success

demand generation metrics

Demand generation is the process of creating awareness and interest in a product or service in order to attract potential customers and generate demand. It is an essential part of any marketing strategy, as it is the first step in the customer journey that leads to a sale. To measure the success of demand generation efforts, various metrics are used. These metrics help marketers understand the effectiveness of their campaigns, identify areas for improvement, and make data-driven decisions.

In this article, we will discuss the most important metrics in demand generation, how they are measured and calculated, and their importance in driving business growth. However, it is important to note that each company can set their own metrics of success which may not be listed here.


Website Traffic

Conversion Rates

Cost per Lead (CPL)

Customer Lifetime Value (CLV)

Return on Investment (ROI)

Lead-to-Customer Conversion Rate

Click-through Rate (CTR)

Cost Per Sales Qualified Opportunity (CPSQO)

Demo Booked to Sales Qualified Opportunity (DBSQO)

Customer Acquisition Cost (CAC)

Linking Demand Generation Metrics to Growth Metrics

Frequently Asked Questions (FAQ)

Website Traffic

Website traffic is the number of visitors that come to a website within a specific period of time. It is an important metric in demand generation as it indicates the effectiveness of various marketing efforts such as search engine optimization (SEO), social media marketing, and paid advertising.

To measure website traffic, marketers use tools such as Google Analytics, which provides insights on the number of unique visitors, pageviews, and bounce rates. Marketers can also track the traffic sources, including organic, referral, direct, and paid traffic.

Importance: Website traffic is important because it is the first step in the customer journey. Without traffic, there are no potential customers to convert into leads and sales. By measuring website traffic, marketers can identify which channels are driving the most traffic and optimize their campaigns accordingly.

Conversion Rates

Conversion rate is the percentage of website visitors who take a desired action, such as filling out a form or making a purchase. It is an important metric in demand generation as it measures the effectiveness of campaigns in driving actions that lead to revenue.

To calculate conversion rates, divide the number of conversions by the number of website visitors and multiply by 100.

Conversion Rate = (Conversions / Website Visitors) x 100

Conversion rates can be measured for different stages of the customer journey, such as lead generation, trial sign-ups, and sales.

Importance: Conversion rates are important because they directly impact revenue. By improving conversion rates, marketers can generate more revenue without increasing traffic. By measuring conversion rates, marketers can identify which campaigns and channels are most effective at driving conversions and optimize their efforts accordingly.

Cost per Lead (CPL)

Cost per lead (CPL) is the cost of ge