Formula
New Customer Contribution Margin = NC CM2 − NC Marketing Cost − Ad Spend
orders.new_customer_cm3.
Formula Components
Example
Your store’s new customer orders in March:How It Works
Upstack starts from the net revenue of new customer orders and subtracts their COGS, fulfillment and transaction costs. Those come from new customer orders only, using the customer type on each order. NC Marketing Cost is subtracted next. Its page explains which costs it includes. Ad spend is different. Upstack can’t tell which ad spend went to new customer orders, so it subtracts all of it. The same ad spend is taken off the returning customer version too, so adding the two together doesn’t give total CM3. Recurring and variable marketing costs are different: they’re split between the two versions by net revenue, so only ad spend is counted twice.When to Use
Related Metrics
See all Contribution Margin metrics →