RC CM1 % measures the gross margin percentage from returning customer orders—what percentage of repeat-order revenue remains after COGS.
RC CM1 % = ( RC CM1 ÷ RC Net Revenue ) × 100
| Metric | Definition |
|---|
| RC CM1 | Gross margin from returning customer orders |
| RC Net Revenue | Net revenue from returning customers |
| Metadata | |
|---|
| Type | Percentage |
| Data Source | Shopify, Upstack Costs |
| Aggregation | Ratio |
Example
Returning customers generated $48,000 CM1 from $75,000 net revenue.
| Component | Value | Calculation |
|---|
| RC CM1 | $48,000 | Gross margin |
| RC Net Revenue | $75,000 | Revenue base |
| RC CM1 % | 64% | $48,000 ÷ $75,000 × 100 |
How It Works
RC CM1 % normalizes returning customer gross margin as a percentage. Compare against NC CM1 % to understand if returning customers buy higher-margin products or receive fewer discounts than new customers.
When to Use
| Scenario | Action |
|---|
| Analyzing customer behavior | See if repeat buyers purchase higher-margin items |
| Evaluating loyalty discounts | Measure if RC discounts hurt margin rates |
| Comparing segments | Benchmark RC CM1 % vs NC CM1 % |
| Tracking retention quality | Monitor RC margin trends over time |
| Metric | Relationship |
|---|
| RC CM1 | Dollar amount that RC CM1 % is based on |
| NC CM1 % | Gross margin rate for new customers |
| CM1 % | Overall gross margin rate |
