Returning Customer CM1 measures the gross margin from repeat buyers—net revenue minus COGS for returning customer orders only.
RC CM1 = RC Net Revenue − RC Total COGS
| Metric | Definition |
|---|
| RC Net Revenue | Net revenue from returning customer orders |
| RC Total COGS | Cost of goods sold for returning customer orders |
| customer_type = returning_customer | Filters to repeat buyers |
| Metadata | |
|---|
| Type | Currency |
| Data Source | Shopify, Upstack Costs |
| Aggregation | Sum |
Example
Returning customers generated $75,000 net revenue with $27,000 in COGS.
| Component | Amount | Calculation |
|---|
| RC Net Revenue | $75,000 | Repeat buyer revenue |
| RC COGS | $27,000 | Product costs |
| RC CM1 | $48,000 | $75,000 − $27,000 |
How It Works
RC CM1 isolates the gross margin from returning customers—orders placed by customers who have purchased before. This margin comes without additional acquisition cost, making it a key indicator of retention profitability.
When to Use
| Scenario | Action |
|---|
| Measuring retention value | Track RC CM1 as zero-acquisition profit |
| Comparing customer segments | Benchmark RC CM1 against NC CM1 |
| Evaluating loyalty programs | Measure margin impact of retention initiatives |
| LTV planning | Use RC CM1 to project lifetime value |
| Metric | Relationship |
|---|
| RC CM1 % | RC CM1 as a percentage of RC net revenue |
| NC CM1 | Gross margin from new customers |
| Returning Customers | Count of repeat buyers |
