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Returning customer discount amount as a percentage of returning customer gross revenue.

Formula

Returning Customer Discount Gross Rate = ( Returning Customer Discounts ÷ Returning Customer Gross Revenue ) × 100

Formula Components


Example

Your returning customers generated $145,000 in gross revenue with $11,600 in loyalty discounts:

How It Works

This metric divides returning customer discount dollars by returning customer gross revenue, then multiplies by 100. It measures how much repeat buyer revenue is offset by loyalty or promotional discounts. High rates may indicate over-reliance on discounts to drive repeat purchases, cutting into retention margins.

When to Use


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