How can an entrepreneur know whether their digital marketing strategy is truly delivering results?
The answer doesn’t lie in general feelings or follower counts on social media alone, but rather in Digital Marketing Health Metrics that provide an accurate picture of brand strength and campaign performance.
In this guide, we’ll go through 10 key indicators, explaining how to measure each one, what healthy benchmarks look like, and how these metrics can vary from one brand to another.
Why Do Entrepreneurs Need Digital Marketing Health Metrics?
- Digital marketing isn’t just an expense—it’s an investment that should be measured for returns.
- Tracking the right metrics helps avoid distractions from so-called vanity metrics, such as inactive follower counts.
- These indicators help in:
- Determining if the strategy is heading in the right direction.
- Identifying weaknesses early.
- Making data-driven decisions rather than relying on personal impressions.
10 Digital Marketing Health Metrics and How to Measure Them
1- Brand Awareness
How to measure:
- Search volume for the brand name in Google Trends.
- Impressions across digital platforms.
- Direct audience surveys asking: “Have you heard of this brand before?”
Healthy benchmarks:
- 30–40% awareness in the target market is a good start.
- Major brands need more than 60%.
Variations by brand:
- A local startup might consider 20% awareness a success.
- A global brand needs 70%+ in its key markets.
2- Engagement Rate
How to measure:
- (Total interactions ÷ Total reach) × 100.
Healthy benchmarks:
- Facebook/Instagram: 1–3% is good.
- TikTok: 5%+ is excellent.
Variations by brand:
- Educational content usually gets lower engagement than entertainment.
- Smaller brands often achieve higher rates due to more niche targeting.
3- Website Traffic Quality
How to measure:
- Bounce rate.
- Average session duration.
- Pages per visit.
Healthy benchmarks:
- Bounce rate under 50%.
- Session duration above 2 minutes.
- More than 1 page per visit.
Variations by brand:
- E-commerce sites need longer, multi-page visits.
- Educational blogs may be fine with single, comprehensive page visits.
4- Conversion Rate
How to measure:
- (Number of customers ÷ Number of visitors) × 100.
Healthy benchmarks:
- E-commerce: 2–4% is a healthy average.
- B2B/SaaS: 5–10% is excellent.
Variations by brand:
- Low-cost products usually achieve higher conversion rates.
- Complex services convert lower but bring higher deal values.
5- Customer Acquisition Cost (CAC)
How to measure:
- (Total digital marketing spend ÷ Number of new customers).
Healthy benchmarks:
- CAC should be less than one-third of Customer Lifetime Value (CLV).
Variations by brand:
- Luxury brands can afford higher CAC due to high CLV.
- Consumer brands need lower CAC to stay profitable.
6- Customer Lifetime Value (CLV)
How to measure:
- Average purchase value × Purchase frequency × Relationship duration.
Healthy benchmarks:
- CLV should be ≥ 3 × CAC.
Variations by brand:
- Restaurants/cafés measure yearly spend and visits.
- Software companies focus on subscription length and loyalty.
7- Return on Marketing Investment (ROMI)
How to measure:
- (Revenue from digital marketing – Marketing costs) ÷ Costs × 100.
Healthy benchmarks:
- Any positive number is healthy.
- +200% or higher is excellent.
Variations by brand:
- In B2C, higher ROMI is needed to offset lower margins.
- In B2B, lower ROMI can still be acceptable due to higher deal sizes.
8- Net Promoter Score (NPS)
How to measure:
- One question: “On a scale of 0–10, how likely are you to recommend our product?”
- NPS = % Promoters – % Detractors.
Healthy benchmarks:
- 0–30: Good.
- 30–70: Strong.
- +70: World-class.
Variations by brand:
- Financial services/airlines tend to score lower due to experience factors.
- Consumer software can score high if UX is great.
9- Social Share of Voice
How to measure:
- (Brand mentions ÷ Total mentions of competitors) × 100.
Healthy benchmarks:
- 10% in a crowded market indicates strong impact.
Variations by brand:
- Startups may celebrate 5%.
- Big brands need 20–30% to maintain leadership.
10- Customer Retention Rate
How to measure:
- ((Current customers – New customers) ÷ Customers at start) × 100.
Healthy benchmarks:
- SaaS: 80%+.
- E-commerce: 30–50%.
Variations by brand:
- FMCG brands tend to have lower retention.
- Subscription services need high retention for sustainable revenue.
How to Translate Metrics into Actionable Decisions
- Low conversion rate → Improve UX and landing pages.
- High CAC → Reevaluate digital marketing channels.
- Weak retention → Invest in customer service and loyalty programs.
Common Mistakes in Measuring Digital Marketing Performance
- Focusing only on surface numbers like follower counts.
- Ignoring the relationship between CAC and CLV.
- Relying on a single metric instead of a full picture.
- Overlooking customer feedback while focusing only on numbers.
Conclusion
Measuring digital marketing health requires a mix of 10 essential metrics covering brand awareness, engagement, financial returns, and customer loyalty.
But “ideal” benchmarks aren’t universal—they vary depending on industry, market size, and target audience.
The real intelligence lies in turning these numbers into practical decisions that steadily drive the brand forward.
References
- HubSpot – Marketing Metrics & KPIs
https://blog.hubspot.com/marketing/marketing-metrics - Harvard Business Review – Measuring Brand Health
https://hbr.org/2019/03/a-better-way-to-measure-brand-health - Google Analytics Documentation
https://support.google.com/analytics/ - Neil Patel – Marketing Metrics Every Marketer Should Track
https://neilpatel.com/blog/marketing-metrics/ - Sprout Social – Social Media Metrics That Matter
https://sproutsocial.com/insights/social-media-metrics/
If you’re just starting, focus first on Brand Awareness (to see if your target audience knows you) and Conversion Rate (to measure if your efforts bring real customers).
Other metrics like CAC and CLV become more important as you scale.
Clear signals include:
Growth in new customers month over month.
Customer retention rate above 40% in e-commerce or 80% in SaaS.
Positive Return on Marketing Investment (ROMI).
The key is to balance growth (new customers) with loyalty (repeat customers).
Vanity metrics: Numbers like follower count or views without direct impact on sales.
Actionable metrics: Data such as conversion rate or CLV that reflect financial returns or real value.
Example: 1,000 likes on a post don’t equal one paying customer.
There’s no universal “golden number.”
You should compare yourself against:
Industry benchmarks.
Your own historical performance (Year-over-Year growth).
For example: a 2% conversion rate may be excellent in e-commerce but weak in SaaS.
Yes. Example: If website traffic grows by 50% but conversion rate drops, it means the visitors aren’t your target audience.
That’s why metrics should always be read as a complete dashboard.
The golden rule: CLV should be ≥ 3 × CAC.
If CAC equals or exceeds CLV, your marketing strategy is not profitable long-term.
Absolutely.
Local markets may accept lower awareness levels (20–30%).
In global markets, you should aim for higher awareness (60–70%) to compete seriously.
Also, costs differ: CAC in the U.S., for instance, is much higher than in emerging markets.
