Performance Marketing Metrics: CAC, ROAS, LTV & AOV Explained
Marketing without metrics is guessing. These are the numbers that tell you whether your spend is building a profitable business.
CAC — Customer Acquisition Cost
Total marketing spend divided by new customers acquired. If CAC exceeds the profit from a customer, you\'re losing money on growth.
ROAS — Return on Ad Spend
Revenue generated per rupee of ad spend. A ROAS of 4 means ₹4 revenue per ₹1 spent — but compare it to your margins, not just the ratio.
AOV — Average Order Value
Average value per order. Raising AOV through bundles and upsells improves the economics of every acquisition.
LTV — Lifetime Value
Total profit a customer generates over their relationship with you. Healthy businesses have LTV well above CAC — that\'s the real growth engine.
The India-specific factor: RTO
Return-to-origin on COD orders quietly destroys margins. Track RTO rate and factor it into your true CAC and profitability.
How they fit
Profitable growth = LTV > CAC, healthy ROAS, rising AOV, and controlled RTO. Optimise the system, not one metric.
Statura sets up tracking and reports the metrics that matter so you scale profitably.