DTC Fashion Multi-Channel Baseline

Demonstrates handling incomplete data for a DTC fashion brand with only ad spend provided. Shows baseline CAC calculation, identifies missing cost categories, and provides actionable recommendations while noting limitations of the analysis.

Input

What you provide to the skill

DTC fashion brand Nov: Meta $25k/400 customers, TikTok $15k/300 customers, Google $10k/150 customers. What’s my CAC?

Output

What the skill generates for you

True CAC Analysis - November 2024

Direct Costs Summary

Channel	Direct Spend	Customers	Naive CAC
Meta	$25,000	400	$62.50
TikTok	$15,000	300	$50.00
Google	$10,000	150	$66.67
Total	$50,000	850	$58.82

Initial Assessment

What you’ve provided:

Meta (Facebook/Instagram): $25,000 ad spend, 400 customers
TikTok: $15,000 ad spend, 300 customers
Google: $10,000 ad spend, 150 customers

What’s missing (typically 20-40% of true CAC for fashion DTC brands):

Marketing tools and software (Shopify apps, email marketing, analytics)
Team time (campaign management, ad creative production)
Content creation costs (product photography, video production, influencer fees)
Marketing overhead (portion of salaries, agency fees)

Path A: Baseline CAC (Ad Spend Only)

Channel	Ad Spend	Customers	Baseline CAC
Meta	$25,000	400	$62.50
TikTok	$15,000	300	$50.00
Google	$10,000	150	$66.67
Blended	$50,000	850	$58.82

Limitation: This is NOT your true CAC. Your real CAC is likely $70-$90 (20-50% higher) when including all marketing costs.

Channel Ranking (Ad Spend Only)

TikTok - $50.00 (BEST)
Meta - $62.50
Google - $66.67 (HIGHEST)

Industry Benchmarks - DTC Fashion

DTC Apparel CAC Range: $30-$80 typical
Fashion/Apparel: $40-$90 (varies by segment)
Warning threshold: CAC should be < 30% of AOV for healthy unit economics

Quick Assessment

TikTok (Winner): Lowest CAC at $50, best efficiency. TikTok is performing exceptionally well for fashion brands in 2024-2025.

Meta (Solid Performer): Middle CAC at $62.50, reasonable volume (400 customers). Meta remains strong for fashion DTC despite competition.

Google (Needs Attention): Highest CAC at $66.67 with lowest volume (150 customers). Shopping campaigns may need optimization.

Recommendations

1. Scale TikTok Aggressively (Highest Priority)

Best CAC, 25% better than Meta
TikTok is driving strong performance for fashion brands
Increase budget 50-100% ($15K → $22-30K) and monitor CAC stability
Test more creators and UGC content

2. Optimize or Maintain Meta

CAC is acceptable but 25% higher than TikTok
Test: Shift budget from Facebook feed to Reels/Stories
Consider influencer collaborations to reduce direct ad costs

3. Fix Google Shopping

Highest CAC with lowest volume—concerning
Actions: Optimize product feed, test different ROAS targets
Consider: If Google CAC doesn’t drop below $60, reallocate 30-50% of budget to TikTok

4. Calculate Your TRUE CAC (Next Step)
To get accurate CAC, provide:

Monthly marketing tool costs (Shopify, Klaviyo, etc.)
Team time spent on campaigns (hours x rate)
Content/photography costs
Any agency or freelancer fees

Your true blended CAC is likely $70-90 once all costs are included, which will change the channel efficiency ranking and recommendations.