High CTRs and a shiny ROAS look good in a dashboard, but they can hide thin margins and unsustainable acquisition costs.

To grow a brand that lasts, founders need to follow the money all the way to profit.

1. Lifetime Value (LTV)

• Calculate average revenue per customer over their entire relationship with your brand.

• Segment by acquisition channel to see which campaigns bring high-value shoppers.

• Compare LTV to customer acquisition cost (CAC) for a true read on return.

  
  

2. Blended CAC

• Add up all marketing costs across every channel, then divide by total new customers.

• Use this figure alongside channel-specific CAC to spot inefficiencies.

• A rising blended CAC warns you when growth is outpacing efficiency.

  
  

3. Payback Period

• Measure how long it takes to recoup acquisition cost from a customer’s purchases.

• Shorter payback means healthier cash flow and more room to reinvest.

• Use cohort analysis to track how this changes over time.

  
  

4. Contribution Margin

• Factor in product costs, shipping, and variable expenses to see profit per order.

• Identify which products or campaigns pull their weight after all costs.

• This margin, not gross revenue, drives real scale.

  
  

5. Repeat Purchase Rate

• Track how often customers return in a given time frame.

• Combine with LTV to plan re-engagement and loyalty efforts.

• A strong repeat rate lowers reliance on constant new-customer acquisition.

Putting It Together

Review these metrics together each month:

• LTV:CAC ratio to check sustainable acquisition.

• Payback period for cash-flow health.

• Contribution margin to protect profit.

This integrated view tells you whether growth is profitable or just expensive.

Key Takeaways

• ROAS alone can mislead; dig deeper.

• Profitability lives in LTV, CAC, payback, and margin.

• Regular review lets you reinvest confidently and avoid hidden losses.