New customer discount amount as a percentage of new customer gross revenue.
| Metric | Definition |
|---|
| New Customer Discounts | Total dollar value of discounts applied to first-time buyer orders |
| New Customer Gross Revenue | Total revenue from new customers before adjustments |
| Metadata | |
|---|
| Type | Percentage |
| Data Source | Shopify |
| Aggregation | Ratio |
Example
Your new customers generated $92,000 in gross revenue with $8,280 in discounts:
| Metric | Value |
|---|
| New Customer Gross Revenue | $92,000 |
| New Customer Discounts | $8,280 |
| NC Discount Gross Rate | 9.0% |
How It Works
This metric divides new customer discount dollars by new customer gross revenue, then multiplies by 100. It measures how much of first-time buyer revenue is offset by promotional discounts. Higher rates indicate aggressive acquisition discounting that may reduce margins on initial purchases.
When to Use
| Scenario | Action |
|---|
| Evaluating acquisition costs | Combine with CAC to understand true cost of new customer orders |
| Margin analysis | Monitor discount erosion on first-purchase profitability |
| New vs. returning comparison | Benchmark against RC Discount Gross Rate for retention efficiency |
| Promotion optimization | Identify if acquisition discounts can be reduced without hurting conversion |
| Metric | Relationship |
|---|
| NC Discount % | Related percentage metric for new customers |
| NC Discount Per Order | Average discount per new customer order |
| RC Discount Gross Rate | Compare acquisition vs. retention discount rates |
| Discount Amount | Total discounts across all customers |
