10 key KPIs to monitor your digital transformation success

Identifying the right KPIs is essential for monitoring the success and effectiveness of initiatives aimed at leveraging technology to improve processes, enhance customer experiences, and drive innovation.
13 March 2024 • 5 min

In today’s fast-paced business landscape, digital transformation has become more than just a buzzword—it’s a strategic imperative for organizations striving to stay competitive. However, embarking on a digital transformation journey without clear metrics to measure progress can be akin to sailing without a compass. This is where Key Performance Indicators (KPIs) play a pivotal role.

Identifying the right KPIs is essential for monitoring the success and effectiveness of initiatives aimed at leveraging technology to improve processes, enhance customer experiences, and drive innovation.

Discover the 10 Key Digital Transformation KPIs to Monitor:

Cost-benefit analysis

Conduct a comprehensive cost-benefit analysis will guide investment decisions within a digital transformation framework and help you prioritize components with the quickest ROI.

This strategic approach ensures efficient resource allocation and maximizes the impact of the digital transformation.

Return on investment

Return on investment (ROI) remains a key indicator for the success of any initiative, including digital transformation. It’s important to compare the cost of new technologies with the benefits you get from them.

Beyond direct costs, consider training, new hires as well as deployment and management costs when calculating ROI.

Bear in mind that ROI realization may require time, with long-term benefits outweighing initial returns.

A steady increase in digital revenue indicates the effectiveness of digital strategies in driving business growth.

Cost Savings

Digital transformation should deliver tangible cost savings by streamlining processes, reducing manual interventions, and optimizing resource utilization.

Tracking KPIs such as operational costs, IT infrastructure expenses, and cost per transaction provides visibility into the financial benefits of digital initiatives.


Implementing new processes and technologies can either enhance or complicate employee productivity.

Whether it is the time employees take to perform a certain task or the number of tasks they complete within a certain time frame, you need to define what productivity means to your company and the metrics to evaluate the performance.

Don’t make the assumption that a digital transformation initiative will immediately increase productivity. You need to anticipate a learning curve for employees to maximize the benefits of digital transformation.

Monitoring metrics such as task completion times, workflow automation rates, and employee feedback can help gauge improvements in productivity resulting from digital initiatives.


Metrics like adoption rate, time spent on features, active users, and retention provide insights into platform utilization and help you gauge how well employees within your organization embrace the new digital tools and processes.

Low values in these metrics may indicate the need for additional training and adjustements to accelerate the digital transformation.


The capacity to transform business models, processes, and products using technology not only fosters a company’s growth but also enhances its value for customers.

Performance metrics evaluate the efficiency of business processes and the impact of new technologies on resource investments.

  • Mean Time to Failure (MTTF): the average time an asset functions before its first failure. This metric shows the system’s reliability with respect to non-repairable system failure
  • Mean Time to Resolve (MTTR): the average time needed to resolve the cause of failure
  • Mean Time Before Failure (MTBF): the average time between two failures
  • Uptime: the percentage of time that an asset is functional

Time to market

By reducing product lifecycle and time to market through digital transformation, organizations can gain a competitive edge and respond more effectively to evolving customer needs.

Measuring the time required to move a product or service from conception to market helps you identify bottlenecks, risks and necessary improvements.

Customer experience

Positive customer experience is paramount for building brand loyalty and satisfaction.

These metrics help you gauge customer engagement and satisfaction levels, which surpass price and quality considerations in consumer priorities:

  • Customer Effort Score (CES): the amount of effort needed for a customer to complete a given task
  • Customer Satisfaction (CSAT):a customer’s degree of satisfaction with a particular product or service
  • Net Promoter Score (NPS): the probability that a customer will recommend your product or service to someone they know

These KPIs provide valuable insights into how well digital enhancements are meeting customer expectations and driving positive experiences.

Reliability and availability

A reliable digital infrastructure is essential for building a strong reputation and maintaining customer trust.

Availability metrics like MTTF, MTTR, MTBF, and Uptime are crucial indicators of the platform’s reliability and its impact on productivity to ensure seamless operations.


Active usage metrics such as daily active users, conversion rate, and abandon rate provide insights into user engagement and platform effectiveness.

They help you identify areas for improvement, such as enhancing feature adoption and reducing task abandonment rates.

In conclusion, selecting the right KPIs is crucial for guiding and evaluating the success of digital transformation efforts.

It is important to avoid an overload of KPIs is crucial, ensure KPIs are measurable, target a defined audience, and offer specific business benefits.

By aligning KPIs with strategic objectives and regularly measuring progress, organizations can drive sustainable growth, enhance competitiveness, and capitalize on the opportunities presented by digital innovation.

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