Total contribution margin from new customer orders only—net revenue minus all variable costs for first-time buyers.
| Metric | Definition |
|---|
| New Customer Net Revenue | Net revenue from first-time buyers after discounts and refunds |
| New Customer Total Cost | Sum of all variable costs for new customer orders (COGS, fulfillment, transaction, marketing) |
| customer_type = new_customer | Filters to orders from customers making their first purchase |
| Metadata | |
|---|
| Type | Currency |
| Data Source | Shopify, Upstack Costs |
| Aggregation | Sum |
Example
Your store generated $45,200 in new customer contribution margin in Q1:
| Month | NC Net Revenue | NC Total Cost | NC Contribution Margin |
|---|
| January | $52,400 | $40,860 | $11,540 |
| February | $61,200 | $46,980 | $14,220 |
| March | $68,500 | $49,060 | $19,440 |
How It Works
New Customer Contribution Margin isolates profitability from first-time buyer orders. It takes net revenue from new customers (after discounts and refunds) and subtracts all variable costs—COGS, fulfillment, transaction fees, and marketing. The result shows true profit generated from customer acquisition before fixed costs.
When to Use
| Scenario | Action |
|---|
| Evaluate acquisition profitability | Compare NC contribution margin to ad spend for true acquisition ROI |
| Set marketing budgets | Use NC contribution margin trends to determine sustainable spend |
| Compare customer segments | Benchmark new vs. returning customer profitability |
| Forecast unit economics | Project profitability based on expected new customer volume |
| Metric | Relationship |
|---|
| New Customer Net Revenue | Revenue component before cost deductions |
| New Customer Total Cost | Cost component subtracted from revenue |
| Contribution Margin | All customers combined |
| Returning Customer Contribution Margin | Repeat buyer comparison |
