For every D2C eCommerce business, regularly assessing performance is key to understanding how well it’s doing and where improvements are needed. But which D2C analytics metrics should you focus on to get a comprehensive view of your brand?
Darya Kislova, our marketing analyst, has compiled a list of the 10 most important D2C metrics that businesses should focus on when evaluating their performance.
Be sure to check them out!
Table of Contents:
- Overview of the 10 Metrics that D2C eCommerce Businesses Should Measure
- Let’s Chat and Explore How We Can Help Your D2C Business Grow
Overview of the 10 Metrics that D2C eCommerce Businesses Should Measure
Below, we provide an overview of the ten most important D2C metrics, explaining how to measure them, what they reveal, and why they are vital for D2C business success.
Conversion Rate (CR)
Formulas:
- CR = (Conversions / Sessions) × 100% — for low-value products or those requiring a short consideration time
- CR = (Conversions / Users) × 100% — for high-value products or those requiring a longer consideration period
What this metric measures: The percentage of sessions or visitors that complete a desired action (e.g., purchase, subscription, or registration).
Why this metric is important: CR indicates how effectively a website converts visitors into customers. A higher CR boosts revenue and ROAS without increasing traffic costs, which makes it a critical metric for all D2C businesses. Your CR should be closely analyzed when optimizing conversion funnels.
Average Order Value (AOV)
Formula: AOV = Revenue / Orders
What this metric measures: The average amount spent per order.
Why this metric is important: AOV reflects customer spending behavior. Increasing this metric helps boost ROAS and offsets rising traffic costs, making it especially valuable for D2C businesses with upselling and cross-selling opportunities.
Value per Session (VPS)
Formula: VPS = Total Revenue / Total Sessions = AOV × CR
What this metric measures: The average revenue generated per website session.
Why this metric is important: VPS helps assess market efficiency by segmenting users and identifying which segments have either no potential growth or the biggest growth potential.
Cost per Session (CPS)
Formula: CPS = Total Marketing Spend / Total Sessions
What this metric measures: The average cost to drive a website session.
Why this metric is important: CPS helps evaluate traffic quality and marketing efficiency. By segmenting traffic sources, businesses can identify high-performing channels and allocate budgets more effectively to improve ROI.
Customer Lifetime Value (LTV)
Formula: LTV = (Average Order Value × Purchase Frequency) × Average Customer Lifespan
= Average Revenue per Customer / Churn Rate = Total Revenue / Total Number of Customers
What this metric measures: The total revenue a business can expect from a customer over their lifetime.
Why this metric is important: LTV helps shape retention and acquisition strategies. A higher LTV improves profitability, which makes it especially vital for subscription-based D2C businesses and those focused on long-term customer relationships.
Customer Acquisition Cost and New Customer Acquisition Cost (CAC and NCAC)
Formulas:
- CAC: Total Marketing Spend / Total Customers Acquired
- NCAC: Total Marketing Spend / New Customers Acquired
What these metrics measure:
- CAC: The cost to acquire any customer
- NCAC: The cost to acquire new customers only
Why these metrics are important: Lower CAC and NCAC ensure efficient growth, which is essential for D2C businesses scaling through ads. Balancing these costs with LTV is critical for maintaining profitability as the business expands.
Return on Ad Spend (ROAS)
Formula: ROAS = Total Revenue / Total Spend = Value per Session / Cost per Session = LTV / CAC
What this metric measures: Revenue generated per dollar spent on advertising.
Why this metric is important: ROAS indicates the effectiveness of ad campaigns and is crucial for optimizing marketing budgets.
Repeat Customer Rate
Formula: Repeat Customer Rate = (Number of Repeat Customers / Total Customers) × 100
What this metric measures: The percentage of customers who make a repeat purchase.
Why this metric is important: The Repeat Customer Rate reflects the percentage of customers who make more than one purchase, indicating customer loyalty and reducing the reliance on acquiring new customers.
Churn Rate
Formula: Churn Rate = (Number of Customers Lost / Total Customers at Start) × 100
What this metric measures: The percentage of customers who stop engaging with the business.
Why this metric is important: Churn Rate provides insights into customer retention and its impact on LTV. It’s particularly important for subscription-based D2C businesses as managing churn is key to sustaining recurring revenue and long-term growth.
Average Purchase Interval
Formula: Average Purchase Interval = Sum of Time Gaps between Purchases for Each Customer / Number of Customers
What this metric measures: How quickly customers return to make another purchase.
Why this metric is important: Knowing the average purchase interval helps forecast demand and optimize inventory levels. It also allows for better planning of restocking schedules, which is especially critical for products with consistent consumption patterns.
All in all, measuring the ten metrics that we’ve covered will give your D2C business a clear view of how it is performing and where to focus your efforts for improvement.
Let’s Chat and Explore How We Can Help Your D2C Business Grow
If your D2C eCommerce brand needs a reliable and experienced partner to help fine-tune the right strategies, assess your performance, and boost your growth, book a consultation with our team. We’re excited to connect and explore how we can help you take your D2C business to new heights.
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