Important metrics to monitor D2C startups

India's total addressable D2C market, which includes both online and offline direct-to-consumer sales, is expected to grow fifteen times between 2015 and 2025. Tracking the development of your brand is essential if you want to keep ahead of the curve with the increasing number of brands. Here are some critical elements for each D2C brand to take into account.?

Repeat Customer Rate (RCR)

A repeat customer is someone who has made at least two purchases from your website. It's especially useful for assessing your total customer experience and determining how much value your customers receive from your company.

Customer Acquisition Cost (CAC)

The term "customer acquisition cost" refers to the expense of obtaining a customer to use a product or service (CAC). It takes more than just creating low-cost strategies for attracting new customers to maintain low CAC costs in the D2C market segment. You must also rely on the quality of your brand, services, and products to keep people coming back.

Customer Lifetime Value (CLTV)

A customer's value to your company should be considered over the course of the entire relationship, not just for a single purchase, according to the CLV metric. This improves the financial stability of your business.

Customer Retention Rate (CRR)

The percentage of current customers who keep doing business with you after a set amount of time is known as your customer retention rate. You can gain a better understanding of the elements that keep customers coming back to your business in the direct-to-consumer market by looking at your customer retention rate. These elements include things like 1-day delivery, pricing, promotional advertisements, and areas where customer service should be improved.

Product Return Rate

Your e-commerce return rate is the frequency with which customers send items back to your online business. Effective product returns strategies and programs can result in?increased revenues, lower costs, improved profitability, and enhanced levels of customer service.

Product Margin

The profit margin of a product reveals how well it performs in relation to its price. This useful indicator reveals which items in a company's line generate the highest revenue in relation to their cost.

Average Order Value

The average order value (AOV), a D2C metric, establishes the typical sum of each order a client places with a retailer over a specified period of time. One of the most crucial variables for online retailers to understand is AOV because it has an impact on crucial business choices including advertising spending, store layout, and product pricing.

Net Promoter Score (NPS)

Any company, product, store, or customer care team—not just an organization—can develop and routinely monitor the Net Promoter Score. By focusing on the dual objectives of increasing promoters and decreasing detractors, the gains the support of everyone.

Net Revenue Retention (NRR)

The percentage of recurring revenue from current customers that is retained over a certain period is known as net revenue retention (NRR) (usually monthly or annually). Hence, this sums together the monthly recurring revenue from all clients.

Cart Abandonment Rate

The act of a potential consumer beginning the checkout process for an online order but stopping before completing the transaction is known as shopping cart abandonment.?This rate looks at the percentage of website users who indicate a desire to buy by adding something to their cart but then giving up on the transaction.