New Customer CM1 %: First-Order Gross Margin Rate

NC CM1 % measures the gross margin percentage from new customer orders—the percentage of first-order revenue remaining after COGS.

Formula

NC CM1 % = ( NC CM1 ÷ NC Net Revenue ) × 100

Formula Components

Metric	Definition
NC CM1	Gross margin from new customer orders
NC Net Revenue	Net revenue from new customers

Metadata
Type	Percentage
Data Source	Shopify, Upstack Costs
Aggregation	Ratio

Example

New customers generated $32,000 CM1 from $50,000 net revenue.

Component	Value	Calculation
NC CM1	$32,000	Gross margin
NC Net Revenue	$50,000	Revenue base
NC CM1 %	64%	$32,000 ÷ $50,000 × 100

How It Works

NC CM1 % normalizes new customer gross margin as a percentage, making it easy to compare profitability rates across customer segments regardless of volume. Compare against RC CM1 % to see if new or returning customers generate higher margins.

When to Use

Scenario	Action
Comparing customer segments	Check if NC CM1 % differs from RC CM1 %
Tracking acquisition efficiency	Monitor margin rate trends for new customers
Evaluating promotions	See how discounts impact new customer margins
Setting pricing strategy	Ensure NC margins support acquisition costs

Metric	Relationship
NC CM1	Dollar amount that NC CM1 % is based on
RC CM1 %	Gross margin rate for returning customers
CM1 %	Overall gross margin rate

See all Contribution Margin metrics →

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​Formula

​Formula Components

​Example

​How It Works

​When to Use

​Related Metrics

Formula

Formula Components

Example

How It Works

When to Use

Related Metrics