OKR vs KPI: What’s the difference and why do they matter?

Let's be honest. Your clients don’t care whether you’re using OKRs, KPIs, or a wall of sticky notes. They care about results, clarity, and confidence that you’re moving the needle on their business performance.

At our agency, we believe that metrics are only useful if they help to drive decision-making. As a result, we focus on identifying actionable metrics that can be used to inform and improve our marketing efforts.

Guy Hudson, Founder, Bespoke Marketing Plans

As an agency, you need a simple way to:

• Turn big, fuzzy business goals into clear strategic goals

• Measure progress without drowning clients in standalone metrics

• Give your leadership team and account managers a shared view of organizational performance

• Show how your work impacts revenue, leads, and customer satisfaction

Welcome to the world of OKRs vs KPIs, which are more than acronyms, they are the compass guiding us through a complex digital landscape. For the uninitiated, OKRS stands for Objectives and Key Results, and KPIs stands for Key Performance Indicators, respectively. Let's not just stop at decoding the acronyms, though.

• OKRs help you set ambitious goals and align the entire agency around what matters most this quarter or year.

• KPIs help you track KPIs regularly so you can see how much progress you’re making and identify problems before they become bigger issues.

Within client reporting and account management, OKRs and KPIs represent the two essential pillars. They are individual yet intertwined, and understanding the unique roles and interplay of OKRs vs KPIs is crucial. Think of them as the rhythm and melody in a song, each holding their ground, yet creating harmony when they come together.

Used well, both OKRs and KPIs help you improve business performance, keep your team focused, and make client conversations about outcomes, not activities.

This guide is designed to equip your agency's marketing team with a deep understanding of KPIs and OKRs and how they drive business growth. We're not just about throwing out fancy words and leaving you in the dust. Instead, we aim to make sense of these terminologies and how they can be effectively applied in the practical world.

The focus here is on how these objectives and indicators, OKRs and KPIs, work in tandem, creating a more informed and strategic approach to account management.

Why KPIs and OKRs are Important

Tracking marketing metrics is non-negotiable when it comes to running an agency. While key performance indicators (KPIs) are already an integral part of your operations, there’s another system to track performance: objectives and key results (OKRs). 

Your clients probably don’t care about the difference between KPIs and OKRs–they just want results. It’s your job as an agency to sit with them to understand their business goals, set up the right metrics to track your progress, and then let them know how you’re getting them there. 

Let’s dive in.

What Is a Key Performance Indicator (KPI)?

Key performance indicators (KPIs) are quantitative metrics that show how well you’re performing against a measurable target tied to a specific goal.

At OTM, we start by identifying the overarching goals of the campaign and then we establish a set of lead and lag measures that align with those goals.

Lead measures are the measures that tell us if we're likely to achieve our goal, and lag measures tell us if we've achieved the goal.

Additionally, we create a set of KPIs that measure the performance of each individual campaign activation. Each is important in understanding the effectiveness of our campaign as it relates to the overall goals of the business.

Kerrie Luginbill, Chief Strategy Officer, OTM

Your agency might monitor dozens of metrics. But key performance indicators KPIs are the small subset of important metrics that tell you whether your work is actually driving strategic success for a client.

Note the difference between KPIs vs metrics. Your agency may track many metrics–but that doesn’t mean they all equally contribute to your clients’ long-term goals. And while all KPIs are metrics, not all metrics are key performance indicators (KPIs). 

Some quick distinctions:

• All KPIs are metrics, but not all metrics are KPIs.

• KPIs measure performance against a clear objective and time frame.

Without that context, KPIs become standalone metrics that look interesting but don’t determine success.

KPIs tend to be ongoing metrics that you review on a regular basis—weekly, monthly, or quarterly—to keep an eye on ongoing performance and operational efficiency.

KPI's keep us accountable. KPI's provide the client transparency into what work we delivery and most importantly... KPI's demonstrate that we are on track and achieving mutually agreed upon goals - this is our agencies true north "results for clients".

David Krauter, SEO Strategist, Websites That Sell

Some of your clients may not know about KPIs but set this foundation early on to establish reporting best practices. Explain to them that KPIs tie directly into their business goals, and emphasize the importance of tracking them. After all, it’s the only way to progress and improve.

They’re also how you prove value. When you track progress using well‑chosen KPIs, it’s much easier to show the direct link between your work and outcomes like revenue growth, customer retention, and sales performance.

KPIs allow us as, the agency, to demonstrate our value to the client. There's basics KPIs such as spend, clicks, impressions, ranking, etc, but the real KPIs every client wants to know is leads and/or sales.

When you can clearly demonstrate this month over month, it increases your retention rate and keeps clients paying you month after month.

Jacob Hicks, Owner, Magnyfi

Monitoring KPIs has two-fold benefits: Not only will your clients understand what’s happening in their business, but you’ll also demonstrate your agency’s ROI and ability to achieve results. 

KPI Examples

Here are common KPI reporting examples you might track for clients:

• Website performance

  • Monthly unique visitors

  • Organic sessions from target countries

  • Landing page conversion rate

• Acquisition and sales performance

  • Marketing qualified leads (MQLs) per month

  • Sales qualified leads (SQLs) per month

  • Sales revenue from paid search campaigns

  • Opportunity‑to‑close rate

• Customer satisfaction and retention

  • Customer satisfaction scores (CSAT or NPS)

  • Customer retention or churn rate

  • Average response time from the customer success or sales team

• Brand and market share

  • Share of voice in organic search

  • Branded search volume

  • Estimated market share in a niche

Each KPI has:

• A clear definition and quantitative metrics behind it

• A measurable benchmark or target

• A defined time frame (e.g., “this quarter,” “this month”)

• An owner responsible for making progress

The right KPIs vary by client—but the principle is the same. Choose specific KPIs that help you measure success on the goals that matter most.

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What Are Objectives and Key Results (OKR)?

Objectives and Key Results (OKRs) is a goal setting framework that connects your organization’s goals to measurable outcomes.

• The Objective is a qualitative statement of what you want to achieve.

• The Key Results are the measurable key results—usually 3–5 performance indicators—that show whether you’ve achieved that objective.

Tech companies like Google helped popularize OKRs as a way to set ambitious, aligned goals across large organizations.

 For agencies, OKRs are useful when you want to:

• Align company-wide OKRs with client and revenue targets

• Help your marketing team, sales team, and customer success function move in the same direction

• Push beyond “maintain what we have” and set ambitious goals that stretch the team

At Rothbright, we really like the objectives and key results (OKR) framework. We believe goal setting is required for improvement. We live by the famous business adage: you can’t control what you don’t measure.

We use an objectives and key results approach to both the client acquisition and client retention process to stay on track and perform better over time.

Daniel Patton, CEO, Rothbright

In simple terms, OKRs define the desired outcomes for a fixed time frame, and the Key Results tell you exactly how you’ll measure success.

It’s an intentional tactic to set high, aspirational targets and take business goals up a notch. OKRs also encompass something similar to KPIs (known as ‘Key Results’ in this framework), which are used as data measures of success toward the specified objective. 

Think of this long the lines of that classic quote by Normal Vincent Peale.

“Shoot for the moon. Even if you miss, you'll land among the stars.”

The reason behind setting aggressive–and sometimes unrealistic–goals is that even if you don't achieve them, your client will be better off than when you started.

The challenge with setting these kinds of "shoot for the moon" goals is that you run the risk of constantly underperforming–which is never a good look for a marketing agency.

We chose to use the OKR framework because it allows us to assign very specific metric outcomes easily and to track against them.

Daniel Patton, CEO, Rothbright

That's why it's important, if your client uses the OKR framework, to clarify if the goal is to hit 100% success for every goal. For most who are using OKR vs KPI frameworks, the targets are set high to encourage pushing boundaries. In fact, getting close to 100% completion on all of your OKRs typically means they were not ambitious enough.

Objective and Key Results (OKR) Examples

Objectives and their associated Key Results are typically set within the same timeframe or deadline to achieve. This is one of the foundational principles of the OKR framework: Key Results serve as the measurable steps toward achieving the Objective within a specific timeframe. So if Objectives are set for the quarter, Key Results are typically also set for the quarter.

Let’s look at an example of an OKR you might set for a client trying to market their SaaS business:

Objective: Increase trial‑to‑paid conversion and customer satisfaction for our SaaS client this quarter.

Key Results:

1. Improve free‑trial to paid conversion rate from 12% to 18%.

2. Raise average onboarding customer satisfaction scores from 4.1 to 4.6 out of 5.

3. Reduce support average response time during trial from 6 hours to under 2 hours.

4. Achieve sales revenue of $250,000 from trial users by the end of the quarter.

Here:

• The Objective is directional and inspiring.

• Each Key Result is a measurable outcome with a clear measurable target.

• Together, they provide concrete performance metrics your team can track KPIs against.

Even if the client doesn’t hit every Key Result, they’ll still see improved business performance if they get close.

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What Makes An Effective OKR?

An OKR is made up of three components: 

• Levels of focus

• A clear time frame

• A way to measure progress

Let’s explore each component further.

1. Levels

OKRs are usually set at the following three levels:

• Company Wide (with OKR examples like total revenue or increased brand awareness)

• Team (e.g., the Marketing Team OKR to find the best way to attract MQLs)

• Individual (e.g., conversion rate improvements assigned to the CRO manager)

As an agency, your role is to take the COMPANY OKR (this is your client’s business goal) and get your TEAM (your marketing agency) to work together to set INDIVIDUAL goals–aka, goals for specific campaigns and campaign specialists.  

2. A Clear Timeframe

At each level, set 3-5 OKRs with either an annual or quarterly timeframe. Using over 5 OKRs will risk diluting your agency’s or client’s focus, which is counterproductive.

If you’re using an annual timeframe, use quarterly OKRs to support it. That way, you’ll know exactly what needs to be done each month. 

For example, if the goal is to increase the conversion rate by 20% by the end of the year, you can break that down into smaller conversion rate improvements (e.g., 5%) each quarter.

3. Grading to Measure Progress 

There are two distinct ways to measure OKR progress:

• Binary Grading: A key result is graded as either ‘0’ (not achieved) or ‘1’ (achieved).

• Spectrum Grading: A key result is graded between 0 and 1 (or on a percentage scale of 0% to 100%). Scores closer to 0 indicate that key results are far off track. On the other hand, scores closer to 1 indicate a higher likelihood of success.

Let’s take an example. Say your client sets a key result as ‘get the brand live on TikTok before the end of the month,’ which is tied to their overall objective of getting 1,000 sales in that quarter. At your next monthly meeting, they’re most interested in answering the question, ‘Was the TikTok campaign launched or not?’ 

A binary key result works well in this case because it’s either a yes (binary score of 1) or no (binary score of 0). Think about it–there’s no way that 0.5 of a TikTok account could be launched!

The challenge with a binary result is that it doesn't take into account the work in progress toward that result. Your team might be 90% of the way to completing the client's TikTok setup, but if it's not completed by the deadline, it counts as "not achieved."

On the other hand, another client may have a company-wide aim to hit a $100,000 sales target coupled with a key result of ‘increasing website traffic to 10,000/month’. 

A spectrum works well to monitor progress as website visits climb before the month’s end. At mid-month, your agency may report a score of 0.60, which tangibly shows you’re on track to deliver their key result by the end of the month. 

Setting Ambitious Goals with OKRs

One interesting feature of OKRs is that the objective is supposed to be an ambitious “stretch” goal: your client should set an objective that’s possible without necessarily knowing if it can be achieved. 

Without a clear and specific objective, it becomes nearly impossible to measure, and regardless of mission or vision, there is no way to be held accountable.

Daniel Patton, CEO, Rothbright

For example, Google aims for an OKR score of 0.6 - 0.7, which means that employees are expected to fall short despite doing their best. In fact, consistently hitting an OKR score above 0.7 is a cause for concern since it means they’re not being ambitious enough when setting their goals.

It’s important to note that OKRs are not tied to compensation in these use cases because the system is meant to encourage risk-taking and for teams to work together to push boundaries.

Whether you’re using OKRs or KPIs, use the annotations and goals feature on AgencyAnalytics to stay one step ahead. Create your own custom goals with a free 14-day trial. 

OKRs vs. KPIs: What Are the Similarities and Differences? 

As we’ve outlined, OKRs and KPIs work in tandem with your clients’ business goals. Here’s a quick summary of their similarities and differences. 

While OKRs and KPIs both provide valuable insights, the major difference is that OKRs include an overall target that guides all key results. 

As such, OKRs give a ‘why’ and an explanation for your client’s key results, which is helpful for context and understanding the big picture.

KPIs, however, solely provide data progress and don’t always tie into an ambitious goal or objective. Nonetheless, OKRs and KPIs are both valuable measures to drive your client closer to success. However, there are instances when one works better than the other–let’s explore below. 

When To Use OKRs Instead of KPIs

As outlined, OKRs encompass something akin to KPIs as part of the overall goal framework. But when is it best to use an OKR framework vs. KPIs? Let’s explore this further with an example.

Say your client aims to reach 1M website views in the 2nd quarter of the year. To get there, you may set actionable KPIs such as injecting $50,000 in Google display ads and churning out 20 blogs per month.

In this case, an OKR framework will work to reach your client’s ambitious target (or at least close to it). While those KPIs work as standalone measures, the OKR framework adds context and purpose.

On the other hand, say your client doesn’t have such aggressive targets and is only interested in maintaining a baseline, manageable level of web visibility. KPIs alone may do the trick without the need for a high-reaching objective.

In a nutshell, an OKR framework may work better for businesses with an ambitious vision. However, KPIs may be standalone metrics that reflect and maintain business health. 

Whether you’re setting an ambitious OKR target or monitoring KPIs, use a custom marketing dashboard to see the big picture. Create your own on AgencyAnalytics, free for 14 days.

Should OKRs Replace KPIs?

Here’s the big-ticket question you may be wondering–should I replace KPIs with OKRs? One isn’t better than the other necessarily. It depends on where your client is, and what they’d like to achieve. 

And so, OKRs aren’t a replacement for KPIs–they’re an enhancement to the goal-setting system when more refined–and more ambitious–goals are preferred.

KPI vs Key Result: Are They the Same Thing?

While it might be tempting to think that Key Results (KRs) and Key Performance Indicators (KPIs) are essentially the same, a clear and vital distinction between them impacts how they are used within a business context.

KRs or Key Results represent the outcomes or goals that an organization aims to achieve. They are concrete, tangible, and directly tied to an objective. KRs are the benchmarks for success–they define what it looks like to achieve a specific goal.

On the other hand, KPIs or Key Performance Indicators, as the name implies, are metrics used to gauge performance over time. They provide a way to measure progress toward goals but don't necessarily specify what those goals are. KPIs act as the pulse-check or thermometer, indicating how well processes are working to drive towards success.

In short, KRs define where you want to go (the desired outcome), while KPIs help you understand how you are progressing toward that destination. They are two complementary tools in a well-rounded performance management system but aren't the same.

To help put the difference between OKRs vs KPIs in context, let's imagine a client's business objective is to "Increase website traffic by 30% in the next quarter."

A Key Performance Indicator (KPI) that aligns with this objective could be "Monthly website visitors." This KPI would give the company a metric to track over time, allowing them to measure their progress towards increasing website traffic by 30%.

On the other hand, a Key Result (KR) that aligns with the same objective could be "Reach 20,000 unique website visits by the end of the quarter." This KR is specific, time-bound, and measurable, providing a clear benchmark that defines success for the stated objective.

In essence, the KPI helps to track the ongoing progress toward achieving the objective, while the KR clearly states the end result the company wants to achieve within a specific timeframe. Both are vital in shaping and executing an effective business strategy.

So, while KRs and KPIs might be two peas in the performance measurement pod, they're not identical twins. They each bring their unique flavor to the business strategy feast.

The Interplay Between OKRs and KPIs

If you're wondering if OKRs and KPIs can be used together, the answer is: Absolutely.

Remember that the OKR framework houses key results (which are like KPIs cousin) as part of its framework. Using OKRs and KPIs together is a powerful solution for clients with high aspirations and clearly outlined ways to get there (or at least close to it).

Yes, they are different, yet they operate in the same ecosystem, working in sync to guide teams toward desired outcomes. That's why it's not always about using OKRs vs KPIs, but about how they work together.

Exploring the Relationship Between OKRs and KPIs

Consider OKRs (Objectives and Key Results) and KPIs (Key Performance Indicators) as goal-setting and achievement teammates. They are distinct players, each with its unique role, but they work together to score points for the team.

At a high level, the relationship between OKRs vs KPIs is often viewed this way: OKRs are the broad goals a company or team sets for a specified period. They describe what they want to accomplish (the Objective) and how to know if you're successful (the Key Results).

Enter KPIs, the operational metrics that keep a pulse on the day-to-day performance. They offer insights into whether ongoing activities set your team up for success toward the OKRs.

How KPIs Can Feed into Achieving OKRs

KPIs and OKRs share a synergistic relationship. When using OKRs to articulate major goals, KPIs serve as the stepping stones to reach those lofty objectives.

For example: Let's say that the objective is to become the go-to resource for digital marketing insights in a specific region, and a corresponding Key Result is to increase monthly blog readership by 50% in six months. A relevant KPI would be the number of new blog subscribers per month or blog keywords ranked in organic search. This KPI measures an activity that directly contributes to increased readership.

As you can see, KPIs feed into OKRs by providing tangible measures that, if improved, will contribute to achieving your Key Results. They are the checkpoints along the path, helping to ensure that you're on track toward hitting OKR targets.

The interplay between OKRs and KPIs is dynamic and fluid. They work together, each complementing the other, to provide a comprehensive view of where you're heading and how you're progressing. When harnessed correctly, they can be powerful tools in driving organizational success.

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How to roll out OKRs and KPIs across your team

In most organizations, OKRs and KPIs don’t fail because the ideas are flawed. They fail because the rollout is messy. To help OKRs gain traction, you need a clear OKR structure, simple language, and space for individual team members to see how their work connects to the client’s goals.

Start by engaging your team

Begin by engaging employees in the planning conversation instead of dropping a finished document on them. Explain that OKRs express what matters most this quarter, while KPIs provide the day‑to‑day numbers you’ll watch in your dashboards.

When people understand how these two frameworks work together, it’s much easier to build real buy in instead of reluctant compliance.

Assign owners at every level

Next, assign owners for every Objective and each Key Result. At the individual level, individual contributors should own OKRs that match their roles, while team leads tie their own OKRs back to company‑wide goals. This makes it clear who is responsible for the team’s performance and avoids the “everyone and no one” problem when you’re following OKR progress.

Keep the structure simple

When you’re integrating OKRs for the first time, keep the OKR structure simple. For each Objective, focus on two components: a short, human sentence that describes the outcome, and 3–5 measurable Key Results. Adding more will dilute focus and make it harder for teams to know what matters most.

When we begin working with a client we create a set of objectives and corresponding key metrics for each service we provide, and then we report against those metrics on an ongoing basis.

We also require transparency from our clients and we track their business goals alongside our key metrics so that we can ensure our efforts are in alignment with their overarching business goals.

Kerrie Luginbill, Chief Strategy Officer, OTM

Balance ambition and risk

Ambitious goals can feel high risk to the people doing the work, especially if past targets were used mainly for performance reviews. Be clear about which bets are experimental and require support from leadership, and where you’ll be providing additional resources, budget, or tools. That clarity makes it safer for people to commit to their own OKRs and be honest about progress.

Review and compare across teams

Finally, set a regular cadence for reviewing and comparing OKRs across teams. Instead of treating each review as a pass‑or‑fail moment, look at leading indicators in your dashboards—things like click‑through rate, early‑stage conversions, or demo requests—and ask what’s helping each group gain traction. This kind of cross‑team review keeps both frameworks grounded in reality and gives you better stories to share with clients.

What Are Common Mistakes to Avoid With KPIs and OKRs?

Sometimes it doesn't matter whether you go the OKRs vs KPIs route for goal setting. There may be instances where targets are set, and the mark is completely missed. Here’s when that might happen. 

Setting Targets That Aren’t SMART

A common rule of effective goal setting is ensuring your targets are SMART: Specific, Measurable, Attainable, Relevant, and Timely.

If your agency sets targets that aren’t bound to these parameters, it may lead to unattainable goals or vague expectations. For example, say you’ve got a client that wants their website to have a higher Google search ranking. 

Simply setting an OKR goal of ‘Improving Web Visibility’ isn’t the best option if there are no defined ways to track key results. Similarly, KPIs with no specificity or time sensitivity will result in vagueness and increase the likelihood of missing targets altogether. 

Let's pause for a moment to discuss the Attainable part of SMART goals, as we've already mentioned how OKRs are typically more aggressive and sometimes unrealistic. However, they shouldn't be impossible.

When setting OKRs, it's important to keep in mind that the results should be attainable, even if the likelihood of achieving them all is less than 100%.

Lack of Accountability

The debate between OKRs vs KPIs is moot if nobody is accountable for the outcomes. To monitor whether you’re on track to hit key results, your agency needs to ensure accountability. For example, one staff member may be responsible for the SEO arm of an overall OKR goal, whereas another may oversee the advertising aspect.

Regardless of the case, invest in a central hub that streamlines agency operations, allows seamless communication, and shows visual progress toward achieving goals. 

Don’t let important deliverables fall through the cracks. Use a rolling task list on the AgencyAnalytics to ensure your staff is on the same page–try it free for 14 days. 

They Don’t Align With Business Efforts

Let’s take another OKRs vs KPIs scenario; you can’t meet targets if they don’t accurately reflect what’s happening in your client’s business. Let’s say your client sets an OKR for the quarter of 'Drive $200k in eCommerce revenue via a new Shopify storefront.'

However, their business has prioritized an upcoming tradeshow and isn't able to provide your agency with product details, online pricing, or images.

It’ll certainly be a miss if their business efforts don’t align with this KPI (e.g., because there is no way to get their eCommerce website live and optimized without their support). 

That's why it's important to ensure that the entire business is aligned on those goals so everyone can work toward achieving them.

Create custom metrics that accurately reflect your clients’ business goals– try it free for 14 days on AgencyAnalytics.

Not Planning for Unforeseen or External Challenges

This may seem like a bit of an oxymoron. After all, how does an agency plan for unforeseen challenges? And how would this impact the choice between using OKRs vs KPIs?

Unexpected turns happen from time to time which could affect your client’s business outlook. For example, a potential recession, algorithm changes, or technology shifts (such as the Google GA4 update) could greatly impact your client’s chances of success.

In these scenarios, it’s important to factor in the external landscape and make informed decisions. If you’re working with the OKR framework, you’ll want to keep an ambitious target but also ensure it’s not totally out of reach or out of touch. 

Similarly, any set KPIs should realistically factor in what’s happening on the outside.

You'll also need a mechanism to tie these external factors to results. For example, if your team had planned to hit 10,000 clicks from Facebook, but the new page experience has significantly impacted your ability to do so–that's something that should be called out in your report's summary section.

Summary: OKRs vs KPIs, Similar But Different

Understanding the nuances, similarities, and differences between OKRs and KPIs can significantly affect how a marketing team sets, tracks, and achieves client goals. It's like realizing that your left shoe is different from your right. They're not the same, but they're both crucial to a comfortable, effective stride.

OKR set out the desired outcomes and the major steps needed to achieve those goals. They are a powerful goal-setting and goal-management system that encourage you to strive further than you might have thought you could–and measure your progress along the way. It's like saying, "We're going on a road trip, and here's how we’ll know we've arrived."

Enter KPIs, the signposts along the way, the metrics that give you a heads-up about how you're doing on your journey. KPIs are business metrics that are directly relevant to a specific business goal and are used to evaluate the progress toward that goal. They offer regular checkpoints, ensuring you're on track and fueling your confidence.

And while OKRs and KPIs might seem similar, their differences are crucial. By understanding these differences, teams can use OKRs and KPIs to their full potential, driving strategic thinking, guiding operational decision-making, and ultimately steering the organization toward its desired outcomes.

Both are invaluable tools for monitoring progress and tracking data. In summary:

• Use the OKR framework if your agency or client wants to reach an aspirational goal and drive business to higher heights

• Rely on KPIs alone if you're interested in maintaining business health and ensuring that things run smoothly.

The table summarizes the key similarities and differences between OKRs and KPIs, showing how these two important tools work together to drive strategic goal-setting and effective operational performance in an organization. Think of this as the TL;DR section.

Regardless of your OKR and KPI structure, a solid reporting system is an absolute must to communicate your progress to your clients and track your Agency's growth. With a tool like AgencyAnalytics, you’ll manage clients’ OKRs and KPIs under one roof. 

There’s no need to pull all that key result or KPI data manually–use pre-built report templates and dashboards to automate client reporting and save time each month. 

Invest in an automated reporting tool that puts billable hours back in your day. Try AgencyAnalytics free for 14 days, no credit card required.