Percentage of new customer net revenue remaining as contribution margin, filtered by customer_type = new_customer.
| Metric | Definition |
|---|
| New Customer Contribution Margin | Total profit from new customers after COGS, fulfillment, transaction, and marketing costs |
| New Customer Net Revenue | Net revenue from new customers after discounts and refunds |
| customer_type = new_customer | Filters to orders from first-time buyers only |
| Metadata | |
|---|
| Type | Percentage |
| Data Source | Shopify, Upstack Costs |
| Aggregation | Ratio |
Example
Your store generated $45,200 in new customer contribution margin from $125,000 in net revenue, yielding a 36.2% margin rate:
| Customer Type | Net Revenue | Contribution Margin | Margin % |
|---|
| New Customers | $125,000 | $45,200 | 36.2% |
| Returning Customers | $200,000 | $142,000 | 71.0% |
| All Customers | $325,000 | $187,200 | 57.6% |
How It Works
This metric divides new customer contribution margin by new customer net revenue to show what portion of acquisition revenue converts to profit. Lower percentages indicate higher relative costs (COGS, fulfillment, marketing) against first-order revenue—common for brands investing heavily in customer acquisition.
When to Use
| Scenario | Action |
|---|
| Evaluating acquisition efficiency | Compare margin % between new and returning customers |
| Setting CAC targets | Ensure acquisition costs don’t exceed acceptable margin thresholds |
| Channel optimization | Identify which channels acquire customers with better margins |
| Pricing analysis | Determine if new customer promotions erode profitability |
| Metric | Relationship |
|---|
| New Customer Contribution Margin | The numerator (dollar amount before percentage) |
| New Customer Net Revenue | The denominator (revenue base for the percentage) |
| Returning Customer Contribution Margin % | Same calculation for repeat buyers |
| Contribution Margin % | Blended margin across all customer types |
