New Customer CM2 measures the variable margin from first-time buyers—CM1 minus fulfillment and transaction costs for new customer orders.
NC CM2 = NC CM1 − NC Fulfillment Costs − NC Transaction Costs
| Metric | Definition |
|---|
| NC CM1 | New customer gross margin |
| NC Shipping Cost | Shipping costs for new customer orders |
| NC Handling Cost | Handling costs for new customer orders |
| NC Gateway Cost | Payment processing fees for new customers |
| customer_type = new_customer | Filters to first-time buyers |
| Metadata | |
|---|
| Type | Currency |
| Data Source | Shopify, Upstack Costs |
| Aggregation | Sum |
Example
New customers generated $32,000 CM1 with $4,000 fulfillment and $2,000 transaction costs.
| Component | Amount | Calculation |
|---|
| NC CM1 | $32,000 | After COGS |
| NC Fulfillment | $4,000 | Shipping + handling |
| NC Transaction | $2,000 | Gateway fees |
| NC CM2 | $26,000 | $32,000 − $6,000 |
How It Works
NC CM2 shows the contribution margin from new customers after all variable per-order costs. This is the margin available to cover acquisition costs and contribute to profit. If NC CM2 is lower than CAC, you’re losing money on customer acquisition.
When to Use
| Scenario | Action |
|---|
| Setting CAC limits | NC CM2 should exceed CAC for profitable acquisition |
| Comparing customer economics | Benchmark NC CM2 vs RC CM2 |
| Evaluating fulfillment options | See how shipping choices impact new customer margin |
| First-order profitability | Determine if first orders are profitable before marketing |
| Metric | Relationship |
|---|
| NC CM2 % | NC CM2 as a percentage of NC net revenue |
| RC CM2 | Variable margin from returning customers |
| CAC | Cost to acquire new customers |
