> ## Documentation Index
> Fetch the complete documentation index at: https://docs.upstackdata.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Returning Customer Discount Order Rate: Retention Discount Dependency

> Track the percentage of returning customer orders using discounts. Measure retention discount dependency and optimize loyalty promotional strategy.

<Tip>
  The share of returning customer orders that used a discount code or promotion.
</Tip>

## Formula

<Info>
  **Returning Customer Discount Order Rate** = ( [**Returning Customer Discounted Orders**](/reference/metrics/orders/adjustments/discount-count) ÷ [**Returning Customers**](/reference/metrics/orders/customers/returning-customers) ) × 100
</Info>

### Formula Components

| Metric                                                                                                  | Definition                                                 |
| ------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------- |
| **Returning Customer Discounted Orders**                                                                | Count of returning customer orders with a discount applied |
| [**Returning Customers**](/reference/metrics/orders/customers/returning-customers)                      | Total number of returning customer orders                  |
| [**customer\_type = returning\_customer**](/data-dictionary/measures-and-dimensions#visitor-dimensions) | Filters to orders from customers who have purchased before |

| Metadata        |                             |
| --------------- | --------------------------- |
| **Type**        | Percentage                  |
| **Data Source** | [Shopify](/sources/shopify) |
| **Aggregation** | Ratio                       |

***

## Example

Your store had **1,156 returning customer orders** in January, with **462 using discount codes**:

| Period   | RC Discounted Orders | RC Orders | Rate  |
| -------- | -------------------- | --------- | ----- |
| January  | 462                  | 1,156     | 40.0% |
| February | 387                  | 1,034     | 37.4% |

***

## How It Works

Counts repeat buyer orders with discounts and divides by total returning customer orders. Elevated values may signal discount dependency in retention; declining rates show loyal customers converting without incentives.

***

## When to Use

| Scenario                       | Action                                                     |
| ------------------------------ | ---------------------------------------------------------- |
| Evaluating loyalty program ROI | High rates mean discounts drive most repeat purchases      |
| Testing discount reduction     | Monitor if rate drops without hurting retention            |
| Comparing to new customers     | Identify if new vs repeat buyers need different incentives |
| Optimizing retention margins   | Lower rates improve profitability on repeat orders         |

***

## Related Metrics

| Metric                                                                                           | Relationship                                   |
| ------------------------------------------------------------------------------------------------ | ---------------------------------------------- |
| [NC Discount Order Rate](/reference/metrics/orders/adjustments/new-customer-discount-order-rate) | Same metric for first-time customers           |
| [RC Discounts](/reference/metrics/orders/adjustments/returning-customer-discounts)               | Total discount dollars for returning customers |
| [Discount Count](/reference/metrics/orders/adjustments/discount-count)                           | Total orders with discounts (all customers)    |

[See all Adjustments metrics →](/reference/metrics/orders/adjustments)