NC CM1 % measures the gross margin percentage from new customer orders—the percentage of first-order revenue remaining after COGS.
NC CM1 % = ( NC CM1 ÷ NC Net Revenue ) × 100
| 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 |
