Grow revenue without growing losses
Plenty of D2C brands grow top-line revenue while losing money on every order. Our D2C profitability work makes sure growth is built on unit economics that hold up.
The metrics we manage
- CAC (customer acquisition cost): what it costs to win a new customer
- LTV (lifetime value): what a customer is worth over time
- ROAS (return on ad spend): revenue generated for each rupee of ads
- Contribution margin: what’s left after product, shipping, payment, returns and marketing costs
- AOV (average order value) and repeat purchase rate
D2C CAC vs LTV
A healthy D2C brand earns back its acquisition cost and more over a customer’s lifetime. If CAC keeps rising faster than LTV, scaling makes the problem bigger. We work on both sides: lowering CAC through better creative and conversion, and raising LTV through retention and AOV.
How to calculate D2C unit economics
Start with the average order: selling price, minus product cost, shipping, payment fees, expected returns and discounts. What remains is what you can spend to acquire that order and still profit. We turn this into break-even and target ROAS for your campaigns.
How to improve D2C ROAS
Improve conversion rate and AOV on the site, refresh creative regularly, cut spend that doesn’t pay back, and use retargeting and retention to capture more value from each visitor.
Frequently asked questions
What is a good ROAS for a D2C brand?
It depends on your margins. A ROAS that’s profitable for a high-margin brand can lose money for a low-margin one, so we calculate your own break-even and target ROAS.