5 Key Metrics Every D2C Business Needs to Track for Success

As a D2C startup owner, it's important to keep a close eye on your business's performance to ensure its growth and success. Monitoring the right?key performance indicators (KPIs) ?can help you make informed decisions and identify areas for improvement. In this article, we'll cover some of the essential KPIs for a D2C startup to track and how they can be useful in your business's accounting and financial management.

1. Customer Acquisition Cost (CAC):?CAC measures how much it costs to acquire a new customer. Knowing your?CAC ?helps you understand how effective your marketing and advertising strategies are and can help you make adjustments to your budget allocation. Calculating your CAC involves dividing your total marketing and sales expenses by the number of customers acquired during the same period.
2. Customer Lifetime Value (CLTV):?CLTV estimates the total revenue a customer is expected to generate during their time with your business. Knowing your CLTV can help you determine how much you can afford to spend on customer acquisition and retention. It also helps you identify customers who are worth investing in for long-term profitability.
3. Monthly Recurring Revenue (MRR):?MRR? is the predictable and recurring revenue your business generates every month from subscriptions or recurring payments. MRR is a crucial metric to track for a D2C startup because it helps you forecast revenue and make informed decisions about cash flow and budgeting.

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