Clicks don’t Build Brands: Why D2C Growth Depends on What Happens After

For many direct-to-consumer (D2C) brands, RoAS (Return on Ad Spend) has long reigned supreme as the defining metric of success. Ad platforms are optimised down to the decimal. Creatives are A/B tested endlessly. Campaigns are constantly tweaked to eke out marginal gains. But beneath this hyperfocus on performance lies a critical question: are these efforts translating into sustainable business growth?

Increasingly, the answer appears to be no.

While RoAS remains a critical metric in the performance marketing ecosystem, treating it as the only success indicator is shortsighted. Why? Because RoAS measures the cost-efficiency of your ad spend, it doesn’t tell you whether your newly acquired users are actually sticking around, buying again, or driving sustained profitability for your brand. Let’s face it: in 2025, driving traffic is no longer the hard part. The true challenge lies in what happens after the click. That’s where your real revenue is, either unlocked or silently lost.

WHY LIFETIME VALUE, NOT RoAS, IS YOUR TRUE NORTH STAR

RoAS is an essential performance metric, but it’s ultimately narrow in scope. It tells marketers how efficiently an ad converts spend into revenue but says little about long-term outcomes—repeat purchases, customer satisfaction, or brand loyalty. Optimising for RoAS alone is like tuning a car engine without checking if it actually runs well on the road.

The limitation is clear: traffic doesn’t equal traction. Even high click-through rates (CTR) can result in poor conversion or retention if the post-click experience isn’t designed with equal rigour.

This is where Customer Lifetime Value (LTV) is stepping in as a more meaningful compass. LTV reflects not just the first transaction, but the cumulative value a customer brings over time. It is holistic, forward-looking, and rooted in relationship-building, key ingredients for long-term brand equity.

Improving LTV, however, is not about quick wins or performance gimmicks. It requires a shift in mindset, from transactional optimisation to journey-wide refinement. The focus must move beyond acquisition to include every touchpoint that influences whether a customer comes back, engages further, and ultimately spends more over time. From intuitive interfaces and seamless checkouts to proactive retention and post-purchase nudges, each element plays a role in sustaining value. Think of these not as isolated tactics, but as interconnected levers that convert interest into loyalty, and loyalty into longevity. Here's where brands should start:

1. CONVERSION RATE BOOST

User drop-off at checkout remains a significant problem, often due to avoidable friction, clunky forms, missing autofill, or lack of guest checkout options. Minor interventions such as pre-filled addresses, address APIs, and simplified UI can have an outsized impact on conversion rates. These aren’t flashy changes, but they’re effective. 

2. RETURN RATE CONTROL

In the Indian D2C ecosystem, Cash on Delivery (COD) continues to dominate, especially in Tier 2 and Tier 3 markets. But with it comes a persistent challenge: high Return to Origin (RTO) rates. Many brands are now leveraging behavioural data to identify patterns, flagging frequent returners and tailoring payment options accordingly.

One electronics brand saw nearly 60 per cent of its returns originating from repeat offenders. A targeted restriction on COD for these users reduced RTO by 25 per cent in under six months. It’s a pragmatic balance, preserving COD where needed, but applying it judiciously to protect margins.

3. NEW ACQUISITION SCALE

A persistent challenge for emerging D2C players is building trust among first-time buyers, especially when competing against established marketplaces. Hybrid payment models such as partial COD, where users pay a small token upfront are gaining traction. This mechanism filters out low-intent users while preserving the reassurance that COD offers.

A skincare brand that implemented this strategy witnessed a 30 per cent lift in first-time conversions, a significant gain in a market where customer trust is hard-won and easily lost.

4. AOV UPLIFTMENT

Average Order Value (AOV) is another overlooked lever in the LTV equation. Smart nudges such as progress bars indicating free shipping thresholds, limited-time bundles, or cross-sell prompts, can increase basket size without disrupting the user journey. These techniques rely on subtle behavioural cues rather than aggressive upselling. 

5. ABANDONED CART CLOSURE

Contrary to popular belief, an abandoned cart isn’t a final no, it’s often a delayed yes. Automated WhatsApp flows and personalised remarketing have emerged as powerful tools to re-engage users. With the right timing, tone, and contextual messaging, cart abandonment can be reimagined as a second chance rather than a sunk cost.

For example, a grocery brand that adopted this strategy reported a 22 per cent recovery rate on abandoned carts—almost three times higher than conventional email benchmarks.

IT'S TIME TO OPTIMISE POST-CLICK, NOT JUST PRE-CLICK

The D2C ecosystem is evolving rapidly, but one thing remains constant: the need to build relationships with users that go beyond a single transaction. And that starts with what happens after your ad gets clicked.

In this new paradigm, post-click optimisation isn’t optional, it’s essential. Brands that invest in a seamless user journey, smarter checkout flows, trust-building mechanisms, and personalised re-engagement stand to gain not just more customers, but better ones.

The future of D2C growth lies beyond the click. It lives in the repeat purchases, the lower return rates, the higher order values, and the customers who come back, not because they were targeted again, but because the experience was worth returning for.

So, yes, keep an eye on RoAS. But if RoAs may win the sprint, its LTV that wins the marathon.