Returning customer discounts as a percentage of returning customer gross revenue.
| Metric | Definition |
|---|
| Returning Customer Discounts | Total dollar value of discounts applied to returning customer orders |
| Returning Customer Gross Revenue | Total revenue from returning customers before adjustments |
| Metadata | |
|---|
| Type | Percentage |
| Data Source | Shopify |
| Aggregation | Ratio |
Example
Your returning customers generated $125,000 in gross revenue with $8,750 in discounts:
| Metric | Value |
|---|
| Returning Customer Gross Revenue | $125,000 |
| Returning Customer Discounts | $8,750 |
| Returning Customer Discount % | 7.0% |
How It Works
This metric divides returning customer discounts by returning customer gross revenue, then multiplies by 100. Higher percentages indicate heavier discount reliance for repeat purchases, which may signal loyalty program overuse or discount dependency in retention strategies.
When to Use
| Scenario | Action |
|---|
| Evaluating loyalty programs | Compare discount rates to ensure repeat margins stay healthy |
| Retention cost analysis | Monitor if discount dependency is growing over time |
| New vs. returning comparison | Benchmark against new customer discount rates |
| Margin optimization | Identify opportunities to reduce unnecessary repeat discounts |
| Metric | Relationship |
|---|
| Returning Customer Discounts | The numerator — total discount dollars |
| Returning Customer Gross Revenue | The denominator — gross revenue from repeat buyers |
| RC Discount Per Order | Average discount per returning customer order |
| NC Discount % | Compare acquisition vs. retention discount rates |
