Want to grow your B2B tech company in Israel? Start by tracking the right marketing KPIs.
Here’s why it matters:
- Customer Acquisition Costs (CAC) are rising – up 60% in the past five years.
- Lead-to-Customer Conversion Rates show how well your funnel works.
- Customer Lifetime Value (CLV) helps you focus on long-term growth.
In Israel’s fast-paced tech scene, where 25% of startups focus on AI and digital-first behavior dominates, KPIs are your roadmap to smarter decisions.
Use tools like HubSpot or Adobe Marketo to track metrics, and leverage AI for real-time insights. By focusing on data, not intuition, you’ll reduce costs, improve ROI, and stay ahead in the competitive market.
Let’s break down the key metrics and how to use them effectively.
9 B2B Marketing KPIs That Are Best For Your Business
How to Choose the Right Marketing KPIs
Selecting the right KPIs is crucial for driving business success, especially within the dynamic tech landscape.
What Makes a Good KPI
The value of a KPI lies in how well it aligns with your business goals. Instead of just tracking activity, your metrics should provide a direct connection to those objectives.
Good KPIs don’t just measure – they provide actionable insights, help predict future trends, and are easy to track consistently. Today’s marketing leaders are shifting their focus from basic conversion metrics to indicators that clearly show return on investment (ROI).
To stay effective, focus on 10–15 key metrics that directly impact business results. This streamlined approach allows for quicker decisions and more effective communication with executives.
It’s also important to balance leading indicators (which predict future outcomes) with lagging indicators (which confirm past results). Together, they provide a full picture of performance.
Ownership is another critical factor. Assign specific team members to monitor each KPI and establish clear action plans for when metrics deviate from expectations. This accountability drives better performance.
Don’t overlook the importance of regular audits. Verifying data accuracy ensures you’re working with reliable information. Focus on metrics that allow for immediate action when something goes wrong.
To make KPI tracking truly effective, it’s important to adapt it to the unique characteristics of your local market.
In many regions, business culture emphasizes personal relationships and open communication. This can influence how KPI performance is shared and discussed. Building trust sometimes through face-to-face interactions, can be key when working with local partners.
Make sure to align your reports with local standards, including currency and date formats, to ensure clarity and relevance for your audience.
In today’s digital-first global economy, KPIs should prioritize real-time, digital metrics over outdated traditional measures. Fast-moving sectors like tech demand immediate insights that support quick, informed decisions.
Consumer preferences also vary by region. In many markets, personalized experiences and culturally relevant messaging are expected. Your KPIs should reflect how well your marketing efforts meet these expectations.
Regional market dynamics matter too. A tech hub may require very different KPIs than a more traditional or rural area. As automation and programmatic advertising grow worldwide, incorporating tools that support automated KPI tracking is becoming essential.
Finally, as sustainability becomes a global priority, especially among younger consumers consider adding environmental impact metrics to your framework. These KPIs reflect growing awareness around eco-conscious buying and social responsibility.
3 Key Marketing KPIs for Tech Companies in 2025
For B2B tech companies, these three KPIs are essential for measuring marketing success. They each offer unique insights that can drive growth and help allocate resources more effectively. Let’s break them down with examples and benchmarks relevant to the 2025 tech landscape.
Customer Acquisition Cost (CAC)
Customer Acquisition Cost (CAC) calculates how much you spend to win a new customer. This includes expenses for marketing, sales, and advertising. As acquisition costs have climbed significantly in recent years, tracking this metric has become more important than ever.
Here’s how it works: take the total marketing, sales, and advertising costs (e.g., ₪100,000 in January 2025) and divide it by the number of new customers (e.g., 50). That gives you a CAC of ₪2,000.
Over the past five years, acquisition costs have risen by 60%, making it harder to maintain profitability. A high CAC can strain cash flow and limit scalability, while a lower CAC opens the door to faster growth. For SaaS companies, a healthy lifetime value-to-CAC ratio is typically 3:1.
A great example of CAC optimization comes from Tubby Todd. By leveraging advanced analytics tools, they identified the most cost-effective marketing efforts across channels. This allowed them to cut their TikTok customer acquisition costs by 65%.
Lead-to-Customer Conversion Rate
This metric tracks what percentage of qualified leads turn into paying customers. It’s a direct reflection of how well your sales funnel and nurturing processes are working.
To calculate it, divide the number of converted customers by the total number of qualified leads, then multiply by 100. For instance, if you generate 20 qualified leads and 3 become customers, your conversion rate is 15%.
Industry benchmarks can help guide your goals. For SaaS, the median conversion rate is 3.0%, with apps and devices leading the pack at 6.2%. Timing also matters – a response within 5 minutes makes you 10 times more likely to close a deal compared to waiting 30 minutes.
Improving this KPI involves optimizing your website’s navigation and calls-to-action, tailoring content to your audience’s needs, and segmenting leads for personalized outreach. By addressing these areas, you can significantly boost your conversion rates.
Customer Lifetime Value (CLV/CLTV)
Customer Lifetime Value (CLV) estimates the total revenue a customer will generate during their relationship with your company. This metric is crucial for guiding decisions on acquisition, retention, and resource allocation.
CLV helps pinpoint high-value customers, enabling you to tailor marketing and service efforts to their needs. It also highlights strategies that promote long-term value, such as upselling, cross-selling, or improving customer satisfaction.
Retention is a game-changer for CLV. Boosting customer retention by just 5% can increase profits by 25–95%. However, many companies struggle to act on this data – while 81% track CLV, only 37% use it strategically.
Starbucks offers a compelling example of CLV optimization. Through its Rewards program, customers earn points for purchases that can be redeemed for free drinks or discounts. This not only encourages repeat visits but also increases the average spend per visit. A strong rule of thumb is to aim for a CLV that’s at least three times your CAC.
Tools and Methods for Tracking KPIs
Tracking KPIs effectively requires the right tools and processes. With marketing automation growing at an annual rate of 17.67% through 2027, businesses are seeing measurable results from these systems. Let’s break down how to build a system that provides actionable insights.
Marketing Automation Tools
Marketing automation platforms have become indispensable for B2B tech companies aiming to simplify KPI tracking. These tools deliver impressive results – 80% of users report more leads, and 77% see higher conversions. The return on investment (ROI) is notable too, averaging ₪5.44 for every shekel spent over the past two years.
HubSpot Marketing Hub is a standout solution, combining CRM, email marketing, content management, and analytics. It’s particularly effective for tracking metrics like customer acquisition cost (CAC) and lead conversion rates by tying marketing activities directly to revenue outcomes.
Best Practices for KPI Tracking
Choosing the right tools is just the beginning. The way you design and organise your dashboards can significantly influence how well your team interprets and acts on the data.
Start by mapping your customer journey to focus on KPIs that matter. Avoid getting distracted by vanity metrics that don’t contribute to real business decisions.
Keep dashboards simple and uncluttered. Aim for a single screen with no more than nine views, using consistent graph sizes and limited colours. Tailor dashboards to specific team needs for better relevance.
“You need your summary level report, and you need your detail level report. And they need to be connected.”
– Malisa N., Financial Analyst
Schedule monthly reviews with KPI owners to ensure metrics remain relevant and data stays accurate.
Once your dashboards and metrics are in place, incorporating AI can take your KPI tracking to the next level.
Using AI for KPI Tracking
AI-powered analytics are transforming KPI tracking, offering real-time insights that 90% of managers say have led to decisive improvements.
AI platforms can provide automatic alerts and recognise patterns across various data sources. For instance, Walmart used AI-driven predictive analytics to cut forecast errors by 30%, reduce stockouts by 20%, and lower excess inventory by 15%.
Unlike traditional dashboards, which often handle only structured data, AI systems can process unstructured data from sources like chat logs, emails, and social media. This gives businesses a more comprehensive view of customer acquisition and retention efforts.
Natural Language Processing (NLP) makes it even easier by enabling users to ask questions in plain language and receive immediate answers.
“Simply ask your data questions in plain language.”
– Nikhil Jathar, CTO of AvanSaber
Gartner predicts that by 2025, 90% of business leaders will rely on AI-generated insights for strategy, a significant jump from just 30% in 2019. Companies using AI for KPI tracking are also three times more likely to see financial gains compared to those sticking with traditional methods.
AI is particularly effective for optimising CAC, as it can identify cost-efficient marketing channels and predict which leads are most likely to convert. To successfully implement AI, start with clean, well-organised data and expand capabilities gradually as your team becomes more familiar with the technology. This approach ensures accurate data and aligns insights with broader business objectives.
How to Use KPIs to Improve Marketing Performance
Using KPIs effectively isn’t just about tracking numbers – it’s about transforming those insights into actions that drive results. With only 23% of marketers feeling confident in their KPI tracking, many tech companies are missing out on opportunities to sharpen their marketing strategies.
Turning KPI Data into Action
Collecting data is one thing, but acting on it is where the real challenge lies. Harvard Business School Professor Sunil Gupta highlights the importance of going beyond surface-level metrics:
“It isn’t enough to measure the final outcome alone. You also need to track intermediate metrics to understand where consumers might be getting stuck – essentially bottlenecks in the marketing funnel.”
Spotting Performance Bottlenecks
Begin with regular audits of your marketing tools and strategies. Look for patterns in your data that reveal where customers are dropping off. For example, if your lead-to-customer conversion rate is slipping, analyze each step of the customer journey to pinpoint the exact problem.
Planning for Different Scenarios
Develop action plans tailored to specific KPI outcomes. If customer acquisition costs (CAC) rise unexpectedly, be ready to pause low-performing campaigns, shift budgets to better-performing channels, and reassess your targeting.
Streamlining with Integrations
Integrate your marketing platforms to improve efficiency and speed up response times.
Making Decisions in Real Time
Establish clear protocols for responding to KPI shifts. Organizations with real-time response systems see a 31% performance boost. This ties back to earlier discussions about the value of immediate insights for quick adjustments.
Once these immediate actions are in place, the focus should shift to refining and improving strategies over time.
Continuous Improvement Through KPIs
For the most successful companies, KPI analysis isn’t a once-a-month task – it’s woven into daily operations and decision-making processes.
Regular Reviews
Weekly KPI reviews can help you track trends as they happen. Companies that refresh their KPIs annually are 24% more likely to see positive year-over-year results.
Testing and Refining
Use your KPI data to experiment. A/B testing on messaging and targeting can help fine-tune strategies, especially when Return on Ad Spend (ROAS) varies.
Comparing to Industry Standards
Benchmark your KPIs against industry averages to uncover areas for improvement. For example, if your Customer Lifetime Value (CLV) lags behind, investigate whether the issue lies in acquisition quality, onboarding, or retention.
Team Collaboration
Unify marketing and sales teams around shared KPI dashboards and hold regular strategy sessions to keep everyone aligned.
Some companies are even using AI to dig deeper into their KPI data. Wayfair’s CTO Fiona Tan shared how AI revealed a surprising insight:
“We used to think that if you lost the sale on a particular product, like a sofa, it was a loss to the company. But we started looking at the data and realised that 50% to 60% of the time, when we lost a sale, it was because the customer bought something else in the same product category.”
This discovery led Wayfair to rethink how they track lost sales, turning what seemed like failures into valuable insights about customer behavior.
Aligning KPIs with Business Goals
Aligning KPIs with your business goals ensures that every metric ties back to meaningful outcomes. The best KPIs don’t just measure activity – they drive revenue and support broader objectives.
Linking KPIs to Revenue
Every major marketing KPI should connect directly to ROI and business outcomes. For example, when analyzing CAC, also consider the long-term revenue and retention of those customers.
Executive Oversight
Strategic KPI systems benefit from executive involvement. Hervé Coureil, Chief Governance Officer at Schneider Electric, explains:
“We want our KPIs to evolve over time because we don’t want to drive our business on legacy or vanity metrics.”
Empowering Teams
Allow frontline teams to make decisions based on KPI performance without waiting for multiple approvals. This approach can boost productivity by 19%.
Aligning Marketing and Sales
Create Service Level Agreements (SLAs) between marketing and sales teams. Define what qualifies as a lead and establish shared KPIs to focus on converting those leads into customers.
Strategic Reviews
Seventy-two percent of organizations say aligning KPIs with strategic goals is vital for effective performance management. Schedule quarterly reviews to ensure your KPIs stay relevant, especially in the fast-changing tech industry.
Companies leveraging AI to refine KPIs are three times more likely to see financial gains. Yet, only 34% of businesses are using AI for this purpose, despite 60% of managers acknowledging the need for improvement.
The takeaway? KPIs aren’t static – they should evolve alongside your business. As Hans van Bommel, founder of Passionned Group, puts it:
“KPIs should tell the story of both where your organisation is going and how it is getting there. A well-chosen set of indicators can drive real and lasting improvement.”
Conclusion
Tech marketing isn’t easy – it’s a field where success depends on tracking the right metrics and acting on insights quickly. With 73% of CEOs believing that marketers struggle to demonstrate business credibility and drive sufficient growth, marketing teams face mounting pressure to show their worth through measurable outcomes.
From our breakdown of key performance indicators (KPIs), it’s clear that a focused set of metrics can steer strategic decisions effectively. Metrics like Customer Acquisition Cost (CAC), Lead-to-Customer Conversion Rate, Customer Lifetime Value (CLV), Marketing-Sourced Revenue, and Return on Ad Spend (ROAS) are at the core of B2B tech marketing for 2025. These aren’t just numbers; they’re the foundation for shaping strategy and achieving tangible results.
This KPI framework does more than measure success – it fuels continuous improvement. Teams that rely on data rather than intuition see revenue growth at a much faster pace. In fact, by 2026, 65% of B2B sales organizations are expected to outperform those relying on gut instinct by leveraging data-driven strategies.
The real key lies in choosing the right metrics and fostering a culture where KPIs are central to both improvement and strategic alignment. Industry experts emphasize that KPIs are essential for making informed decisions and achieving consistent revenue growth.
For Israeli tech companies, the stakes are high. Proving ROI through well-chosen KPIs isn’t just important – it’s critical for staying competitive and thriving in the market. With the right tools, strategies, and a commitment to ongoing monitoring, tech companies can shift marketing from being seen as a cost to being recognized as a true revenue driver. The tools are already within reach; it’s time to use them to fuel measurable growth.
FAQs
What’s the best way for tech companies in Israel to balance leading and lagging indicators when choosing marketing KPIs?
To strike the right balance between leading and lagging marketing KPIs, tech companies in Israel should begin by defining clear, measurable goals that align with their overall business strategy. Leading indicators, like website traffic or customer engagement, act as early predictors of future performance. On the other hand, lagging indicators, such as revenue growth or customer retention, reflect the results of past efforts.
The trick lies in using leading indicators to generate actionable insights that guide your strategy, while relying on lagging indicators to confirm its effectiveness. For instance, keeping an eye on the lead-to-customer conversion rate (a leading indicator) can help refine your campaigns, while tracking customer lifetime value (a lagging indicator) ensures steady revenue over time. By regularly analyzing both types of metrics, you can make short-term changes without losing sight of long-term goals.
How can Israeli tech companies adapt their KPI tracking to align with local business culture and practices?
Israeli tech companies should zero in on KPIs that match the fast-paced, results-oriented mindset of the local business scene. Metrics like time-to-market, customer acquisition cost (CAC), and lead-to-customer conversion rates are crucial, as they reflect the region’s focus on efficiency and measurable success.
It’s also worth monitoring employee engagement and innovation metrics, given the strong emphasis on teamwork, ownership, and creativity within Israel’s startup culture. Adding KPIs for local market share and compliance can help ensure businesses stay aligned with regional regulations and market trends. By aligning KPIs with these specific cultural and operational factors, companies can more effectively track and improve their performance within Israel’s dynamic tech ecosystem.
How can tech companies use AI tools to improve KPI tracking and make smarter decisions in 2025?
AI tools are transforming how tech companies monitor KPIs and make decisions by delivering real-time insights, predictive analytics, and automated alerts. These features empower businesses to adapt swiftly to market shifts and fine-tune their strategies with precision.
Unlike traditional dashboards, which often rely on static data, AI-powered systems continuously process live data. This allows companies to spot trends, catch anomalies early, and minimize forecasting errors. By automating repetitive tasks and offering actionable insights, these tools free up teams to focus on strategic decisions, helping them stay ahead in the fast-moving tech world.
For Israeli tech companies, using AI tools means tracking key metrics like customer acquisition cost (CAC) and conversion rates with greater accuracy, all while staying in tune with the local market. This dynamic approach supports agility and fuels growth in the ever-changing business landscape of 2025.
