The Difference Between OKRs vs. KPIs for Marketing Agencies

Running a marketing agency combines exhilaration with exhaustion. You create brilliant campaigns, navigate tight deadlines, pivot with shifting client expectations, and still need to prove your value at every turn.

Most agency leaders know this reality. You dedicate everything to client work, yet metrics become a blur, leaving that persistent question: “Are we actually moving the needle?”

This disconnect between effort and measurable impact threatens your agency’s growth. Without clear value demonstration, both client relationships and team morale suffer.

A better path exists through mastering two complementary frameworks: OKRs (Objectives and Key Results) and KPIs (Key Performance Indicators).

What Is a KPI (Key Performance Indicators)?

KPIs are quantifiable metrics that help you gauge your agency’s performance in specific areas. They act as vital signs for your business, covering essential aspects like website traffic, lead generation, conversion rates, and client retention.

To make sure your KPIs are effective, they need to be SMART:

• Specific: Laser-focused and clearly defined
• Measurable: Quantifiable and easy to track progress
• Achievable: Realistic and within your reach
• Relevant: Aligned with your agency’s goals and client needs
• Time-bound: Having a clear deadline to keep you accountable

What’s an example of a KPI?

Consider this example for growing retainer revenue: “Increase average retainer client revenue by 20% within the next 6 months.”

This KPI is specific (retainer client revenue), measurable (20% increase), achievable (based on past performance and current resources), relevant (aligned with your agency’s financial goals), and time-bound (6-month deadline).

Get those KPIs right, and you’ll have a powerful tool to measure your agency’s success. You’ll see what needs fixing and be able to make smart decisions to get results. Forget the guesswork, get clear steps to win.

Here are a few more examples of common KPIs that marketing agencies might track:

Here are a few more examples of KPIs that marketing agencies might track, broken down by function:

What is an OKR (Objectives and Key Results)?

While KPIs monitor current status, OKRs chart your future. This framework transformed Google, LinkedIn, and countless agencies from good to extraordinary.

At its core, an OKR consists of two elements:

1. Objective – The bold destination you want to reach
2. Key Results – The milestones that mark your progress

Objectives should feel ambitious yet attainable, serving as north stars that align with your agency’s purpose. Key Results make that vision concrete through specific, time-bound metrics directly contributing to objective achievement.

What’s an example of an OKR?

Let’s put this into context. Suppose your agency wants to become a go-to source for insights in the field. Your OKR might look like this:

Here’s another example:

This OKR is focused on improving the client experience and reducing the time it takes for clients to see value from the agency’s services. The Key Results support that goal through reduced onboarding time, increased client satisfaction, and the development of self-service resources.

See how the Objective is bold and ambitious, while the Key Results are specific and measurable? Break down the Objective into concrete, actionable steps and you create a clear roadmap for your team to follow.

But the real beauty of OKRs lies in more than just meeting targets. They’re all about pushing your agency to be more innovative and grow. Don’t be afraid to set big goals and let your team get creative. It’ll lead to some awesome new ideas and changes.

Of course, setting effective OKRs is easier said than done. It requires a deep understanding of your agency’s strengths, weaknesses, and opportunities, as well as a willingness to take calculated risks. But when done right, OKRs can be the catalyst that propels your agency to new heights of success.

OKRs vs KPIs – Similarities and Differences

Now that we’ve defined OKRs and KPIs, let’s dive deeper into how they compare and contrast. While both frameworks are essential tools for driving agency success, they serve distinct purposes and work in different ways.

Think of OKRs and KPIs as two sides of the same coin—complementary but not interchangeable. KPIs are your rearview mirror, showing you where you’ve been and how well you’ve performed. They help you monitor the vital signs of your agency and ensure you’re on track to meet your goals.

OKRs, on the other hand, are your telescope, focused on the future and the ambitious destinations you want to reach. They’re the catalyst for pushing your agency beyond its current limitations and achieving extraordinary results.

Let’s break down the key differences:

As you can see, OKRs and KPIs serve different but equally important roles in your agency’s success. KPIs help you stay on course and identify areas for improvement, while OKRs push you to dream bigger and achieve more than you ever thought possible.

The Benefits of Setting OKRs

So, you’re probably thinking… “OKRs sound great in theory, but what’s the real payoff? Is it worth the effort to implement them in my agency?”

Absolutely. Done well, OKRs can make your agency explode with growth, get everyone focused, and make sure everyone’s pulling in the same direction.

Here are just a few of the key benefits:

• Laser-focused alignment: OKRs eliminate chaos caused by contradictory priorities. Everyone rows in the same direction, focused on a shared vision of success. Creative teams, account managers, and developers united under common goals replace internal competition with collaboration.
• Unparalleled transparency: Clear objectives and measurable key results create visibility into expectations and contributions. Team members see how their work impacts the bigger picture, fostering accountability and ownership where everyone feels invested in success.
• Accelerated growth: OKRs push your agency to aim high and think big. Setting ambitious goals challenges your team to stretch beyond comfort zones, creating an environment where innovation thrives and breakthroughs happen.
• Improved decision-making: OKRs provide a clear framework for prioritizing initiatives and allocating resources. When faced with tough choices, teams simply ask: “Which option best aligns with our OKRs?” This clarity speeds decisions and reduces wasted effort.
• Enhanced team engagement: Understanding agency goals and their role in achievement makes team members more motivated and invested. OKRs provide purpose and shared mission, fostering collaboration and engagement culture.

Of course, realizing these benefits requires more than just setting OKRs and forgetting about them. It takes ongoing communication, regular check-ins, and a willingness to adapt as circumstances change. But when you commit to the process and put in the work, the payoff can be truly transformative.

The Benefits of Setting KPIs

While OKRs are the North Star guiding your agency towards ambitious goals, KPIs are the signposts that keep you on track and alert you to potential roadblocks. Here’s how KPIs can benefit your agency:

• Data-driven insights: KPIs provide clear, objective views of your agency’s performance, cutting through noise and gut feelings. Tracking the right metrics identifies what works, what doesn’t, and where to focus efforts for results.
• Early warning system: KPIs detect issues while still manageable. Consistent monitoring spots trends and enables proactive course correction before problems become crises.
• Continuous improvement: KPIs establish baselines, measure progress, and continuously raise performance standards. Tracking metrics over time identifies improvement areas, tests strategies, and optimizes processes for maximum impact.
• Enhanced credibility: Demonstrating value through tangible, data-backed results builds trust and credibility with clients. KPIs provide proof points showcasing expertise and justifying fees.
• Informed decision-making: KPIs provide insights for smart, data-driven decisions about your agency’s future. Whether considering new service offerings, team expansion, or technology investments, KPIs help weigh risks and rewards to choose goal-aligned paths.

Maximize the benefits of KPIs – choose the right metrics to track, ones that are directly tied to your agency’s goals and your clients’ needs. Establish a regular cadence for reviewing and analyzing your KPIs, so you can stay on top of your performance and make timely adjustments as needed.

How to Combine OKRs and KPIs

Now that we’ve explored the benefits of OKRs and KPIs separately, let’s talk about how they can work together to supercharge your agency’s success.

Think of OKRs as the strategic framework that sets the direction for your agency, while KPIs are the tactical tools that help you execute and measure your progress. Used in tandem, they create a powerful synergy that drives focus, accountability, and continuous improvement.

Here’s how it works in practice:

Say your agency sets a goal to be the best social media marketing company in your region. Your Objective might be: “Establish our agency as the premier social media marketing partner for businesses in [your city/region].”

Support this Objective with the following Key Results:

• KR1: Increase social media revenue by 50% over the next quarter
• KR2: Achieve a customer satisfaction score of 90% or higher for social media clients
• KR3: Secure 10 new social media retainer clients with an average contract value of $5,000/month

Now, track your progress towards these Key Results – identify the KPIs that align with each one:

• KR1 KPIs: Social media revenue, revenue growth rate, average contract value
• KR2 KPIs: Customer satisfaction score, client retention rate, Net Promoter Score
• KR3 KPIs: Number of new social media clients, average contract value, sales conversion rate

Monitor these KPIs consistently and you can see how well you’re tracking towards your Key Results and, ultimately, your Objective. Notice a particular KPI lagging? Dig deeper to identify the root cause and take corrective action.

For example, if your sales conversion rate is lower than expected, review your sales process, identify bottlenecks or skill gaps, and provide additional training or resources to your team. Or, if your customer satisfaction score starts to dip, reach out to clients to gather feedback, identify areas for improvement, and make necessary changes to your service delivery.

The beauty of this approach is that it creates a virtuous cycle of goal-setting, execution, measurement, and continuous improvement. Use OKRs to set ambitious goals and KPIs to track your progress – you’ll stay focused on what matters most, make data-driven decisions, and adapt quickly to changing circumstances.

Of course, combining OKRs and KPIs effectively requires more than just setting them and forgetting them. It takes ongoing communication, collaboration, and a willingness to experiment and iterate. But when you commit to the process and put in the work, the results can be be game-changing for your agency.

FAQ and Concerns About OKRs and KPIs

As you explore the world of OKRs and KPIs, it’s natural to have questions and concerns. Let’s tackle some of the most common ones head-on.

OKR vs. KPI – Which one to choose?

This requires both frameworks, not either/or. OKRs serve as strategic roadmaps while KPIs function as dashboard instruments. One sets direction; the other monitors performance. Together they create a complete navigation system.

Can OKRs replace KPIs?

No. Despite both using metrics, they serve different purposes. OKRs drive transformational change through ambitious goals. KPIs monitor existing process health. Navigating with only OKRs resembles rush hour driving with just a compass—you need detailed instrumentation.

Can KPIs be used as Key Results in OKRs?

Yes! Using existing KPIs as Key Results naturally aligns operations with strategy. For client retention as a critical KPI, an appropriate OKR might look like:

Objective: Dramatically improve client retention and reduce churn

Key Results:

• Conduct exit interviews with 100% of churned clients to identify root causes and develop action plans
• Reduce client churn rate from 15% to 5% over the next quarter
• Implement a client success program and achieve a 90% adoption rate

Can a KPI become an OKR?

Yes, a KPI can evolve into an OKR when it becomes a critical driver of your agency’s success and requires a focused, concerted effort to improve.

Let’s say you’re tracking a KPI around client retention, and you notice that your churn rate is starting to creep up. If reducing churn becomes a top priority for your agency, you might create an OKR around it, with Key Results focused on improving retention:

Elevate a critical KPI to an OKR and you create focus and urgency around improving it. This approach ensures that your team is aligned around the goal, and that you’re dedicating the necessary resources and effort to drive meaningful change.

How Often Should OKRs and KPIs be Reviewed?

Find your agency’s effective rhythm using this proven approach:

• OKRs: Weekly progress check-ins with quarterly deep reviews
• KPIs: Monthly reviews for agile metrics (traffic, leads); quarterly for longer-term metrics (retention, profitability)

Consistency matters most. Establish a regular cadence keeping frameworks front-of-mind without creating administrative burden.

OKRs and KPIs aren’t permanent fixtures. Business evolution and priority shifts may require goal and metric adjustments. Revisit and revise as needed to maintain relevance and alignment with agency direction.

Pitfalls and Mistakes to Avoid

While OKRs and KPIs can be incredibly powerful tools for driving agency success, there are also some Experience reveals common implementation pitfalls:

KPI Tunnel Vision

Hitting KPI targets while forgetting why they matter creates problems. Agencies celebrate improved efficiency metrics while client relationships deteriorate—winning battles but losing wars.

Focus solely on KPIs risks optimizing short-term gains at long-term success expense. An agency fixated on monthly sales targets might accept poor-fit clients, temporarily boosting revenue but causing future churn, team burnout, and reputation damage.

Balance operational metrics with strategic direction. KPIs serve your larger mission, not vice versa. Use OKRs to create northstar guidance ensuring short-term decisions align with long-term goals.

The Silo Trap

Departments optimizing their own metrics without considering the whole creates dysfunction. Content teams hit publication targets but generate no leads. Sales teams close deals delivery teams cannot profitably fulfill.

Imagine sales teams pushing revenue targets without coordinating with client services about fit suitability. This leads to strained relationships, missed deadlines, unhappy clients, and high turnover.

Cross-functional OKRs requiring collaboration break down these silos. Shared objectives naturally align team efforts. Encourage constant cross-team communication and coordination while celebrating collective wins beyond individual achievements.

Inconsistent Implementation

Treating OKRs and KPIs as quarterly paperwork exercises kills momentum. Inconsistent or superficial metric reviews turn strategic tools into corporate theater.

Integrate frameworks into daily operations. Reference them in meetings, apply them in decision-making, and visibly celebrate progress. Leaders demonstrating importance inspire teams to follow. Establish check-in cadence through weekly team meetings, monthly all-hands updates, and quarterly strategic reviews. Consistent engagement increases achievement likelihood.

Vanity Metrics

Metrics that look impressive without driving results waste resources. Growing Instagram followers means nothing without engagement or conversions. High website traffic provides no value if visitors never become leads.

Focus on metrics connecting directly to business outcomes. Instead of tracking “social media posts published,” measure “engagement rate” or “leads generated from social.” Review website traffic quality through time on site, pages per visit, and conversion rates to gauge visitor engagement and action-taking.

Question any metric without clear links to revenue, client satisfaction, or operational efficiency.

Perfectionism Paralysis

Overdesigning the perfect framework often prevents implementation. Progress matters more than perfection.

Many agencies become caught trying to identify “right” metrics or “perfect” targets that they implement nothing. OKRs and KPIs work through iteration and adaptation. Start with a simplified approach focusing on 1-2 OKRs and 5-7 critical KPIs. Refine and expand as experience reveals what works for your unique agency.

Common Mistakes to Avoid

When implementing OKRs and KPIs, be mindful of these common mistakes:

Best Practices and Tools

To get the most out of your OKRs and KPIs, it’s important to follow best practices and use the right tools. Here are a few tips to keep in mind:

Collaborate and Align

Working together is key to making OKRs and KPIs work. Get your team involved early on, hear their ideas, and get them on board. This makes sure everyone’s on the same page and working towards the same goals. Make sure your goals are on the same page as your agency’s mission and values. This connects the daily grind with the bigger goals, giving your team a sense of purpose and direction.

Focus on Impact

It’s all about results, not just what you did. When setting goals, focus on measuring what really matters to you and your clients. For example, instead of tracking “number of social media posts published,” measure “engagement rate” or “leads generated from social.” Embrace quality over quantity – it’s better to have a few highly impactful OKRs and KPIs than a long list of less meaningful ones.

Aim for Ambition

Set OKRs that are ambitious enough to challenge your team, yet achievable so they feel inspired to go beyond their limits. Reach for the stars, but stay grounded. Keep your team motivated, not disillusioned. Use historical data, industry benchmarks, and your agency’s growth trajectory to set realistic KPI targets. Strike a balance between aspirational and attainable, pushing your team to grow without setting them up for failure.

Communicate

Maintain consistent and transparent communication by sharing your OKRs and KPIs with the entire agency. Keep their participation top of mind by using tools like dashboards, leaderboards, or regular updates. Celebrate wins, learn from setbacks, and use them as opportunities to recalibrate and improve. The more openly and frequently you communicate, the more engaged and accountable your team will be.

Be Data-Driven

Make data-driven decisions and adjustments, using the insights from your OKRs and KPIs to inform strategic moves, resource allocation, and process improvements. The data is there – use it to drive meaningful change and growth. Stay agile and adaptable, ready to adjust or replace OKRs and KPIs that are no longer relevant or effective. The goal is progress, not perfection.

Foster Accountability

Cultivate a culture where everyone takes ownership and is accountable, with clear assignments for each OKR and KPI. It’s important for everyone to understand their responsibilities and how their contributions impact the agency’s overall success. Integrate OKRs and KPIs into your performance discussions and reviews to guide coaching, development, and recognition of your team. The more ownership they feel, the more invested they’ll be in driving results.

Invest in Tools

Provide your team with the tools and training they need to thrive. Opt for software that streamlines the management of your OKRs and KPIs, enabling easy setup, tracking, and visualization, while integrating with your current systems and providing tailored reporting options.

More importantly, invest in your people – provide the training and support they need to understand and effectively use OKRs and KPIs. The more you grow their skills and confidence, the more they’ll grow your business.

Conclusion

Agencies need a clear plan for success in marketing these days, and data is key. Use OKRs and KPIs together and you can create a powerful system for driving focus, alignment, and continuous improvement across your organization.

OKRs provide the strategic framework for setting ambitious, meaningful goals that push your agency to new heights. KPIs provide the tactical tools for measuring progress, identifying areas for improvement, and making data-driven decisions.

The synergy between OKRs and KPIs fuels a virtuous cycle of goal setting, execution, and optimization, empowering your agency to reach remarkable achievements. Use best practices, avoid the usual pitfalls, and use the right tools – you can make your agency succeed with these frameworks.

However, implementing OKRs and KPIs isn’t a single event. It needs constant dedication, talking, and tweaking. You’ll need to keep an eye on your goals and numbers, and get everyone on the same page.

The journey might be tough, but the reward is worth it. Use OKRs and KPIs to make your agency stand out.