The 13 KPIs To Master for Creative & Marketing Agencies

Arrigo Lupori
Last Updated:
July 17, 2024

Running a marketing agency is a ton of work.

When you work on a project basis, it’s quite easy to lose sight of your own company’s health.

But it’s crucial that you give your KPIs as close of a look as your customers’ projects.

After all, your customers can only get value if your agency is healthy.

I’ve compiled 13 KPIs that will help you track just that.

KPI 1: Client retention rate

Keeping clients around is often easier (and cheaper) than finding new ones. Your client retention rate shows you how well you're doing at keeping your customers happy and coming back for more.

A good retention rate? Upwards of 75%.

That's a good sign you're on the right track.

It means stable revenue and less money spent chasing new clients.

Try implementing some of these:

  • Regular check-ins with clients
  • Loyalty programs for long-term partnerships
  • Proactive customer service

And of course, aim to deliver consistently great work!

Delivering work consistently even at times of growth is crucial to your agency's health

It's a solid benchmark for agency success.

Consider segmenting your retention rate by client size, industry, or service type.

This can help you identify patterns and focus your retention efforts where they're most needed.

Don't forget to track the reasons why clients leave.

It’s an invaluable asset for improving your services and preventing future churn.

KPI 2: Average revenue per client (ARPC)

ARPC is all about understanding the value each client brings to your agency. It's not just about how many clients you have—it's about how much each one contributes to your bottom line.

This metric can help you spot opportunities to upsell or cross-sell services.

It also shows you which type of clients are better suited for your specialization.

To increase your ARPC, consider:

  • Developing tiered service packages
  • Looking for ways to offer additional services to existing clients
  • Focusing on acquiring clients with bigger budgets
  • Reviewing and adjusting your pricing strategy

Tools like ManyRequests give you the opportunity to see how much each customer is worth per category of service, making it easier to adjust pricing as you grow your agency.

Track ARPC over time to identify trends.

Are certain types of clients increasing in value while others decrease?

This can inform your client acquisition strategy.

Consider the relationship between ARPC and client satisfaction.

Pushing for higher ARPC can strain client relationships if not done carefully.

KPI 3: Project profitability

Not all projects are created equal.

Some are “cash cows,” while others can drain your resources without you even realizing it.

That's where project profitability comes in.

It helps you see which types of projects are really worth your time and effort.

To improve project profitability, start by nailing your cost and timeline estimates.

Efficient project management is key—it helps prevent scope creep and keeps things on track.

And don't forget about resource allocation.

Making sure the right people are on the right projects can make a world of difference.

If necessary, implement a system to categorize projects based on their profitability. This can help you make strategic decisions about which types of projects to pursue or even which to phase out.

KPI 4: Billable hours ratio

Your billable hours ratio shows you how much of your team's time is actually making you money.

Aim for a ratio between 70-80%.

Anything lower, and you might be spending too much time on non-billable work.

Want to increase your billable hours?

Reduce backend admin processes.

Use time-tracking software like ManyRequests to spot where time is being wasted.

And consider delegating non-billable tasks to specialized staff.

Look at billable hours ratio on both an individual and team level.

This can help identify high performers and those who might need additional support or training.

Also, consider the impact of different types of projects on your billable hours ratio. Some projects might require more non-billable time upfront but lead to more efficient work later.

KPI 5: On-time project delivery rate

Deadlines matter.

A lot.

Your on-time delivery rate isn't just about keeping clients happy (though that's important).

It's about your agency's reputation.

Consistently meeting deadlines shows clients they can rely on you.

average time to completed and first reply in manyrequests
Track avg. time to completed and to first reply to measure your effectiveness

It builds trust and often leads to repeat business.

To improve your on-time delivery:

  • Set realistic deadlinessome textsome text
    • Give yourself some buffer time for the unexpected.
  • Use project management softwaresome textsome text
    • It'll help you track progress and spot potential delays early.
  • Break big projects into smaller milestonessome textsome text
    • It makes progress easier to track and manage.
  • Always keep your clients in the loopsome textsome text
    • Regular updates can go a long way in managing expectations.

Consider tracking how close to the deadline projects are completed. This can help you identify if you're consistently cutting it close, which might indicate a need for better time management.

Look at the relationship between on-time delivery and project complexity. Are certain types of projects more likely to be delayed? This insight can help you better estimate timelines for future projects.

KPI 6: Client satisfaction score

Happy clients are the lifeblood of any agency.

But how do you know if your clients are truly satisfied?

With standardized customer satisfaction surveys!

Whether you're using online reviews or tracking Net Promoter Score (NPS), regular feedback is crucial.

It helps you understand what you're doing right—and where you might need to improve.

Improving client satisfaction is all about exceeding expectations and providing personalized service.

A satisfied client is more likely to stick around and recommend you to others.

Don't just collect satisfaction scores though—act on them.

Implement a system for following up on low scores and addressing issues quickly.

Finally, track satisfaction throughout the project lifecycle, not just at the end.

This can help you identify and address issues before they become major problems.

KPI 7: Client acquisition cost (CAC)

Growing your agency means bringing in new clients. But at what cost? Your client acquisition cost (CAC) helps you understand how much you're spending to land each new customer.

This KPI is all about the effectiveness of your marketing and sales efforts. Are you spending too much to acquire new clients? Or have you found a cost-effective way to grow your business?

To optimize your acquisition costs, consider refining your target audience.

A more focused approach often leads to more efficient marketing spend.

Implementing a referral program can be a game-changer too.

To get the most value, look at acquisition cost in relation to customer lifetime value.

It might be worth spending more to acquire a client if they're likely to bring in significant revenue over time. Also, track how acquisition cost varies by marketing channel.

This can help you focus your efforts on the most cost-effective methods.

KPI 8: Employee utilization rate

Your team is your most valuable asset.

The employee utilization rate helps you understand how efficiently you're using their time and skills.

Are your team members overworked or underutilized?

This KPI can help you spot potential issues before they become problems.

Aim for a utilization rate between 70-75%. Too high, and you risk burning out contributors.

Too low, and you might not be making the most of your resources.

To improve your employee utilization rate:

  • Balance workloads across team members
  • Identify and address skill gaps
  • Provide regular training to increase efficiency
  • Use resource management tools to track and optimize utilization

Platforms like ManyRequests help you see how much time certain team members are spending on specific tasks, making it easy to spot problems with under- or over-utilization.

Once your analytics are in place, compare utilization rates across different roles and seniority levels.

This can help you identify where to hire or where you have excess capacity.

KPI 9: Revenue growth rate

At the end of the day, your agency needs to grow to thrive.

Your revenue growth rate gives you a clear picture of your business's overall health and trajectory.

  • Are you growing year over year?
  • Staying stagnant?
  • Shrinking?

Answering these questions is fundamental to understanding your position.

analyzing revenue growth rate is crucial to overall agency health
Revenue on its own doesn't tell the whole story - but it's a big part of it

Boosting revenue growth might mean expanding your service offerings or targeting new market segments. It could also involve focusing on higher value clients and projects as you grow your reputation.

Remember, sustainable growth is the goal.

Growth at all costs isn’t always the best choice if you risk delivering lower quality.

Break down your revenue growth by service line, client industry, or geography to spot trends early on and invest more marketing dollars in areas that are seeing significant % growth quarter over quarter.

KPI 10: Average project turnaround time

In agency world, time is literally everything.

Your average project turnaround time shows how quickly you can deliver results to your clients.

Faster turnaround times can lead to happier clients and the ability to take on more work.

But it's a balancing act—you never want to sacrifice quality for speed.

To improve your turnaround time, look at streamlining your project workflow.

Templates and standardized processes can be huge time-savers.

Consider implementing agile methodologies too.

They can help you stay flexible and responsive to client needs.

Also, consider tracking "time to value" – how quickly your work starts delivering results for clients.

This can be a powerful selling point, especially for new customers coming in.

KPI 11: Proposal win rate

Pitching is part of agency life.

But how effective are your sales proposals?

Your proposal win rate tells you just that.

A low win rate might indicate issues with your pitching process.

Maybe your proposals aren't hitting the mark, or your pricing is off.

To increase your win rate:

  • Tailor each proposal to the client's specific needs
  • Include case studies and testimonials to showcase your expertise
  • Clearly communicate your unique value proposition
  • Follow up promptly and professionally after submitting your proposal

You can also use client portals like ManyRequests to add value to your offers.

Make sure to track not just whether you win, but why you win or lose.

This feedback can be invaluable for refining your pitching process.

KPI 12: Lifetime value (LTV)

Think about the long-term sustainability of your business.

That's what LTV is all about.

It estimates the total revenue a client is expected to generate over their relationship with your agency.

Understanding LTV can help you make smarter decisions about client acquisition and retention.

It might show you that it's worth investing more in keeping certain clients happy.

To improve LTV, focus on building long-term client relationships.

Offer loyalty programs or discounts for long-term contracts.

And always, always deliver high-quality work.

It's the best way to encourage repeat business and boost that lifetime value.

Look at how LTV varies across different client segments. Are certain types of clients more valuable in the long run? This can inform your client acquisition and retention strategies.

KPI 13: Resource allocation efficiency

This KPI measures how effectively you're using your agency's resources

Your people, time, budgets, and marketing efforts.

Efficient resource allocation can make the difference between a project that soars and one that sinks.

It's about getting the right people on the right projects at the right time.

To optimize your resource allocation:

  • Use resource management software to track and plan allocations
  • Regularly review and adjust resource assignments
  • Balance workloads across team members and projects
  • Identify and address skill gaps or bottlenecks in your team

A great way to increase efficiency here is automating as many of your backend tasks as possible, allowing you to focus on engaging with the customer rather than spending time behind the scenes.

Efficient allocation should lead to better outcomes on both project profitability and customer satisfaction, it’s not about sacrificing one for the other. Great agencies are efficient agencies!


Mastering these KPIs isn't about obsessing over numbers.

It's about gaining insights that can help you grow your agency, satisfy your clients, and boost your profitability. Keep track, analyze, and most importantly – act on what you learn.

Your agency's success depends on it!