> ## Documentation Index
> Fetch the complete documentation index at: https://docs.upstackdata.com/llms.txt
> Use this file to discover all available pages before exploring further.

# New Customer CM4 %: First-Order Operating Margin

> Track New Customer CM4 percentage for your Shopify store. Measure operating profit margin from first-time buyers.

<Tip>
  NC CM4 % measures the percentage of new customer net revenue that becomes operating profit after all costs.
</Tip>

## Formula

<Info>
  **NC CM4 %** = ( **NC CM4** ÷ **NC Net Revenue** ) × 100
</Info>

### Formula Components

| Metric                                                                           | Definition                     |
| -------------------------------------------------------------------------------- | ------------------------------ |
| [**NC CM4**](/reference/metrics/orders/contribution-margin/new-customer-cm4)     | New customer operating profit  |
| [**NC Net Revenue**](/reference/metrics/orders/revenue/new-customer-net-revenue) | Net revenue from new customers |

| Metadata        |                                                                      |
| --------------- | -------------------------------------------------------------------- |
| **Type**        | Percentage                                                           |
| **Data Source** | [Shopify](/sources/shopify), [Upstack Costs](/sources/upstack-costs) |
| **Aggregation** | Ratio                                                                |

***

## Example

New customers generated **\$7,000** CM4 from **\$50,000** net revenue.

| Component      | Value    | Calculation              |
| -------------- | -------- | ------------------------ |
| NC CM4         | \$7,000  | Operating profit         |
| NC Net Revenue | \$50,000 | Revenue base             |
| **NC CM4 %**   | **14%**  | \$7,000 ÷ \$50,000 × 100 |

***

## How It Works

NC CM4 % shows the operating profit margin from new customer acquisition. A positive NC CM4 % means you're profitable on first orders. Compare against RC CM4 % to understand how profitability changes as customers become repeat buyers.

***

## When to Use

| Scenario                     | Action                                            |
| ---------------------------- | ------------------------------------------------- |
| Validating acquisition model | Ensure NC CM4 % is positive                       |
| Comparing segments           | Benchmark NC CM4 % vs RC CM4 %                    |
| Growth planning              | Use NC CM4 % to model acquisition scaling         |
| Efficiency tracking          | Monitor operating margin trends for new customers |

***

## Related Metrics

| Metric                                                                                   | Relationship                             |
| ---------------------------------------------------------------------------------------- | ---------------------------------------- |
| [NC CM4](/reference/metrics/orders/contribution-margin/new-customer-cm4)                 | Dollar amount that NC CM4 % is based on  |
| [RC CM4 %](/reference/metrics/orders/contribution-margin/returning-customer-cm4-percent) | Operating margin for returning customers |
| [CM4 %](/reference/metrics/orders/contribution-margin/cm4-percent)                       | Overall operating margin                 |

[See all Contribution Margin metrics →](/reference/metrics/orders/contribution-margin)