New Customer CM4 measures the operating profit from first-time buyers—CM3 minus agency fees, OPEX, and other costs for new customer orders.
NC CM4 = NC CM3 − NC Agency Fees − NC OPEX − NC Other Costs
| Metric | Definition |
|---|
| NC CM3 | New customer contribution margin after marketing |
| NC Agency Fees | Agency fees allocated to new customer orders |
| NC OPEX | Operating expenses allocated to new customer orders |
| NC Other Costs | Other costs allocated to new customer orders |
| customer_type = new_customer | Filters to first-time buyers |
| Metadata | |
|---|
| Type | Currency |
| Data Source | Shopify, Upstack Costs |
| Aggregation | Sum |
Example
New customers generated $15,000 CM3 with $2,000 agency fees, $5,000 OPEX, and $1,000 other costs.
| Component | Amount | Calculation |
|---|
| NC CM3 | $15,000 | After marketing |
| NC Agency Fees | $2,000 | Agency allocation |
| NC OPEX | $5,000 | Operating expenses |
| NC Other Costs | $1,000 | Miscellaneous |
| NC CM4 | $7,000 | $15,000 − $8,000 |
How It Works
NC CM4 shows the true operating profit from new customer acquisition after all costs. This is what remains from new customer orders after paying for products, fulfillment, marketing, agency fees, and operating expenses.
When to Use
| Scenario | Action |
|---|
| Measuring acquisition profitability | Ensure NC CM4 is positive for sustainable growth |
| Comparing customer economics | Benchmark NC CM4 vs RC CM4 |
| Budget planning | Use NC CM4 to validate acquisition investment |
| Unit economics | Calculate true profit per new customer |
| Metric | Relationship |
|---|
| NC CM4 % | NC CM4 as a percentage of NC net revenue |
| RC CM4 | Operating profit from returning customers |
| CM4 | Overall operating profit |
