New customer discounts as a percentage of new customer gross revenue.
| Metric | Definition |
|---|
| New Customer Discounts | Total dollar value of discounts applied to new customer 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 $85,000 in gross revenue with $10,200 in discounts:
| Metric | Value |
|---|
| New Customer Gross Revenue | $85,000 |
| New Customer Discounts | $10,200 |
| New Customer Discount % | 12.0% |
How It Works
This metric divides new customer discounts by new customer gross revenue, then multiplies by 100. Higher percentages indicate heavier discount reliance for acquisition, which may signal necessary promotional investment or aggressive discounting that erodes first-purchase margins.
When to Use
| Scenario | Action |
|---|
| Evaluating acquisition costs | Compare discount rates to CAC for true acquisition cost |
| Promotion effectiveness | Monitor if first-purchase discounts drive sustainable growth |
| New vs. returning comparison | Benchmark against returning customer discount rates |
| Margin optimization | Identify opportunities to reduce acquisition discounts |
| Metric | Relationship |
|---|
| New Customer Discounts | The numerator — total discount dollars |
| NC Discount Per Order | Average discount per new customer order |
| RC Discount % | Compare acquisition vs. retention discount rates |
