Question 1

What is a good CAC for Indian D2C brands?

Accepted Answer

A good CAC depends on the category, pricing, and repeat purchase behavior. Most Indian D2C brands operate between ₹400 and ₹1,200 CAC. What matters more is whether LTV comfortably exceeds CAC within a reasonable payback period.

Question 2

How do Indian D2C brands calculate LTV correctly?

Accepted Answer

LTV should be calculated using contribution margin, not revenue. Product cost, shipping, packaging, payment gateway fees, and return losses must be included. This approach gives realistic CAC and LTV for Indian D2C brands insights and avoids inflated customer value.

Question 3

Why is LTV lower than expected for many Indian D2C brands?

Accepted Answer

LTV drops due to delayed deliveries, high returns, inconsistent product quality, and weak post-purchase engagement. Improving D2C metrics in India usually requires operational fixes rather than increasing marketing spend.

Question 4

How long should CAC payback take in Indian D2C?

Accepted Answer

A healthy CAC payback period is typically between three and six months for most Indian D2C categories. Longer payback periods increase cash flow risk, especially in discount-heavy Indian markets.

Question 5

Can CAC vs LTV improve without increasing ad spend?

Accepted Answer

Yes. Better retention, reduced returns, improved logistics, and higher repeat contribution can significantly improve CAC and LTV for Indian D2C brands without spending more on customer acquisition.

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