Digital Transformation KPI: Measuring Success

Digital transformation KPI helps companies measure their success. In fact, about 89% of them use digital transformation for their businesses.

Also, the current pandemic makes businesses more conscious. People are just staying at home. So, brands try to reach out to them through digital.

Moreover, applying technologies to their workflow did many positive things. Which includes:

  • smarter tasks
  • smoother operations
  • remote-work capable
  • managing external partners
  • aligning internal staff
  • ensuring business growth

But, some digital transformation projects fail. Why?

Most of them did not set up the right digital transformation KPI. Besides, only 15% of companies have fully experienced the benefits of digital tools.

Additionally, the above report is from 2015. Yet there is not much improvement since then.

Why Digital Transformation KPI is Important

KPIs help businesses set goals. So, they can map out their achievements.

Businesses can also pinpoint where to improve and automate. They can see which parts of their business need help. So, they can improve it right away.

In addition, they can see that some achievements are not yet accomplished. Thus, they can make solutions to do it.

Hence, having KPIs is an efficient way to get better results. They do not need to wait for the transformation to end before optimizing. Rather, they can do it while transforming. 

So, what are the common digital transformation KPI?

Types of Digital Transformation KPI

There are three types of KPIs.

  1. Customer experience KPIs
  2. Internal processes KPIs
  3. Financial KPIs

Now, let us dive deeper into each of them.

Customer Experience KPIs

One of the digital transformation’s goals is to improve the customer experience. So, checking on these indicators will let you know if your transformation is a success.


  1. Focus on the user journey. User engagements tell you about how a shopper behaves. Also, you can study the conversions of your digital channels.
  2. The lifetime value of a customer. Website traffic is nothing if your customer won’t stay with your brand. So, higher customer retention lets you know about that.

Internal processes KPIs

In adopting transformation, your team and employees should also feel the results.

How can you check it?

  1. Productivity. DX should make employees feel that their tasks are simpler. Also, it allows them to work more efficiently. Thus, it should improve its overall performance.
  2. Adoption. Knowing if your transformation makes your team comfortable is a good sign. Also, you should find out if they are actually using it.

Financial KPIs

It is also crucial to find out if your transformation improves your sales. If not, why transform?

So, what are the KPIs for this?

  1. Revenue. Using the digital tool should affect the generated revenue. Also, it should show the rise in your growth scale. Otherwise, you should consider your overall strategies.
  2. Innovation. Our last KPI is the overall performance of your business. You should see the rate of innovation. This includes your business models and product offerings.


Every business now strives to apply the digital transformation. As mentioned, setting KPIs to help your transformation align with your goals.

Thus, businesses can greatly improve. Also, they can maximize their gains significantly.

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