NC CM2 % measures the percentage of new customer net revenue remaining after all variable costs—COGS, fulfillment, and transaction fees.
NC CM2 % = ( NC CM2 ÷ NC Net Revenue ) × 100
| Metric | Definition |
|---|
| NC CM2 | New customer variable margin |
| NC Net Revenue | Net revenue from new customers |
| Metadata | |
|---|
| Type | Percentage |
| Data Source | Shopify, Upstack Costs |
| Aggregation | Ratio |
Example
New customers generated $26,000 CM2 from $50,000 net revenue.
| Component | Value | Calculation |
|---|
| NC CM2 | $26,000 | After variable costs |
| NC Net Revenue | $50,000 | Revenue base |
| NC CM2 % | 52% | $26,000 ÷ $50,000 × 100 |
How It Works
NC CM2 % shows what percentage of new customer revenue remains after variable costs. This rate determines your maximum allowable CAC as a percentage of AOV. A 52% NC CM2 % means you can spend up to 52% of new customer AOV on acquisition while staying profitable.
When to Use
| Scenario | Action |
|---|
| Calculating max CAC | NC CM2 % × NC AOV = max profitable CAC |
| Comparing segments | Benchmark NC CM2 % vs RC CM2 % |
| Tracking efficiency | Monitor if new customer variable costs are increasing |
| Channel evaluation | Compare NC CM2 % across acquisition channels |
| Metric | Relationship |
|---|
| NC CM2 | Dollar amount that NC CM2 % is based on |
| RC CM2 % | Variable margin rate for returning customers |
| CAC | Cost to acquire new customers |
