> ## 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 %: Discount Share of Gross Revenue

> Measure returning customer discounts as a percentage of gross revenue. Track loyalty discount impact on repeat purchase margins with Shopify order data.

<Tip>
  Returning customer discounts as a percentage of returning customer gross revenue.
</Tip>

## Formula

<Info>
  **Returning Customer Discount %** = ( [**Returning Customer Discounts**](/reference/metrics/orders/adjustments/returning-customer-discounts) ÷ [**Returning Customer Gross Revenue**](/reference/metrics/orders/revenue/returning-customer-gross-revenue) ) × 100
</Info>

### Formula Components

| Metric                                                                                                     | Definition                                                           |
| ---------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------- |
| [**Returning Customer Discounts**](/reference/metrics/orders/adjustments/returning-customer-discounts)     | Total dollar value of discounts applied to returning customer orders |
| [**Returning Customer Gross Revenue**](/reference/metrics/orders/revenue/returning-customer-gross-revenue) | Total revenue from returning customers before adjustments            |

| Metadata        |                             |
| --------------- | --------------------------- |
| **Type**        | Percentage                  |
| **Data Source** | [Shopify](/sources/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 |

***

## Related Metrics

| Metric                                                                                                 | Relationship                                       |
| ------------------------------------------------------------------------------------------------------ | -------------------------------------------------- |
| [Returning Customer Discounts](/reference/metrics/orders/adjustments/returning-customer-discounts)     | The numerator — total discount dollars             |
| [Returning Customer Gross Revenue](/reference/metrics/orders/revenue/returning-customer-gross-revenue) | The denominator — gross revenue from repeat buyers |
| [RC Discount Per Order](/reference/metrics/orders/adjustments/returning-customer-discount-per-order)   | Average discount per returning customer order      |
| [NC Discount %](/reference/metrics/orders/adjustments/new-customer-discount-percent)                   | Compare acquisition vs. retention discount rates   |

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