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Ever been asked to “set a target” for a brand new marketing campaign or product launch?
You open the dashboard. You stare at last quarter’s numbers. You copy-paste something that looks realistic. You add 10% because of growth, right?
Let’s be honest — most KPI targets are pulled from thin air.
And that’s dangerous.
Not because they’re wrong — but because they’re meaningless. They’re not tied to the business. They’re not actionable. They’re not aligned with what actually drives outcomes.
And yet... they end up in dashboards, performance reviews, and investor updates.
It’s time we fix that.
“Just give us a number.”
We knew the product. We had a sense of the market.
ICP? Not perfect, but close enough to make good bets.
But leadership wanted speed. “Just give us a number,” they said.
So we picked one: “Generate 100 MQLs this quater.”
Simple. Tangible. Easy to track.
And we hit it. Barely. But we hit it.
Only… it didn’t move the needle.
Sales didn’t feel the lift. Pipeline quality? Meh. Revenue? Flat.
We’d hit the KPI — but missed the point.
Because the target wasn’t designed to drive the right behaviour.
To hit 100 MQLs, we had to cast a wide net.
So we loosened targeting. Tweaked messaging. Expanded channels.
We weren’t failing at marketing.
We were optimising towards the wrong outcome.
If you’re setting the wrong targets, you’re pulling the wrong levers.
What Changed: From Guesswork to a System
The turning point?
I stopped asking, “What number should we hit?”
And I started asking, “What behaviour does this KPI incentivise?”
That shift led me to a simple, repeatable system for setting KPI targets that actually align with outcomes.
It’s not magic. It’s just structure.
Let’s break it down.
The 10-Minute KPI Target Setting Framework
If you're setting demand gen targets (or honestly, any KPI), run through this checklist. It’ll save you time, confusion, and some awkward QBR moments.
1. Align with Business Objectives
Before you touch a metric, ask:
What’s the actual business goal?
If your company’s goal is $10M in new ARR, and your KPI is “email open rate,” you’ve already lost the plot.
Back everything into the big goal. Reverse-engineer pipeline needs, conversion rates, velocity — whatever is relevant.
So, if your KPI doesn’t ladder up to revenue, retention, or reach, reconsider it.
2. Define Clear Objectives
What is this campaign/program/channel trying to achieve?
Not what it’s doing. What success looks like.
Is it awareness? Lead gen? Upsell? Activation?
Be specific. “Drive demand” is not a goal. “Generate 150 MQLs from our ICP in manufacturing” is.
3. Know Your ICP Cold
Target-setting without audience clarity is like GPS without a destination.
You need to know:
- Who you're targeting
- How they buy
- What signals intent
- What defines “qualified” for your business
Only then can you define the right metrics — and set the right thresholds.
4. Choose KPIs That Matter (Not Just What’s Easy to Track)
Just because you can measure it doesn’t mean you should.
Pick KPIs that:
- Reflect real progress
- Can be influenced by your team
- Aren’t vanity metrics
If you’re optimising for “likes” when the sales team needs pipeline... you’re not helping.
5. Use Historical Data (If You Have It)
Look back before you move forward.
- What did we do last quarter?
- What’s the trend over time?
- What campaigns actually moved the needle?
Not to set limits — but to set context.
No history? Fine. Use estimates, analogues, or industry benchmarks. But make your assumptions clear.
6. Benchmark Wisely
Industry data can help — just don’t treat it as gospel.
- Use benchmark ranges to sanity-check your targets.
- Look at conversion rates, CAC, CPL, MQL-to-SQL rates by channel or vertical.
- Compare with businesses of similar size or sales cycles.
Remember: benchmark ≠ target. It’s just a starting point.
7. Set SMART Targets (But Make Them Agile)
You’ve heard of SMART (Specific, Measurable, Achievable, Relevant, Time-bound). It’s good advice. But here’s the twist:
Make them flexible.
Targets are not set-it-and-forget-it. They’re hypotheses.
Monitor weekly. Adjust monthly. Learn constantly.
8. Align Across Teams (Or Prepare for Chaos)
You can’t set marketing KPIs in a vacuum.
- Does sales agree with what a “qualified lead” is?
- Does product marketing know what messaging is resonating?
- Is customer success flagging churn risks earlier?
Misalignment here leads to finger-pointing later.
So before finalising KPIs, get cross-functional buy-in. You’ll thank yourself later.
9. Build a Feedback Loop
Once KPIs are set, don’t just track them — learn from them.
Ask:
- What’s working?
- What’s moving the needle?
- What’s noise?
Build dashboards that show leading and lagging indicators. Hold weekly or biweekly reviews. Make adjustments fast.
10. Make it a Habit
The best teams don’t just set targets — they reset them.
They treat KPI target setting like a quarterly muscle, not a yearly scramble.
They learn, iterate, and evolve.
That’s what makes performance systems perform.
Mindset Shift: From Proving to Improving
Here’s the part no one talks about:
Most teams use KPIs to prove they’re doing good work.
But the best teams? They use KPIs to improve their work.
That means setting targets that are aggressive but attainable. That means being open to being wrong — and updating fast. That means caring more about progress than perfection.
And that changes everything.
Your Next Move
Here’s what I’d do today if I were you:
- Pick one KPI you’re tracking right now.
- Run it through this framework.
- Ask: Is it aligned? Actionable? Assessable?
- If not, fix it. Don’t wait for next quarter.
Because you don’t need 20 metrics.
You need one that moves.