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RC CM1 % is the share of repeat-order net revenue left after product cost. It shows how much margin your existing customers give up to loyalty pricing, sales, and returns.

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Formula

RC CM1 % = ( RC CM1 ÷ RC Net Revenue ) × 100

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Formula Components

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How It Works

A returning customer order is any order from a Shopify customer other than their earliest non-cancelled order in Upstack. Both sides of the ratio use only those orders, and Upstack divides the summed totals once for the whole range. Because product cost doesn’t shrink when you discount, RC CM1 % reacts strongly to promotions aimed at existing customers: early access sales, loyalty rewards, and win-back codes.

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Example

The same store in two months: The VIP sale lifted gross revenue by 24% and net revenue by 4%, but RC CM1 fell by $4,120. Product cost rose with units sold while the discount ate the extra revenue.

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How to Interpret It

RC CM1 % is the margin rate on revenue from customers you’ve already acquired. When it’s below NC CM1 %, your loyalty offers are richer than your welcome offer, which is worth a look.
  • A drop during sales is expected. Check whether RC CM1 dollars rose or fell, as in the example.
  • A slow decline with stable discounting points to returning customers shifting to cheaper or lower-margin items.
  • A gap versus CM1 % shows how much new versus returning mix drives the store-wide rate.

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Common Pitfalls

  • Refund timing. With the dashboard’s Refunds option on Refund date (matches Shopify), refunds from a sale month can land in the next month and depress its RC CM1 %. Switch to Original order date to tie them to the sale.
  • Missing product costs push the rate up. Check that new SKUs have a cost or that Default COGS % is set in Cost settings.

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FAQ

Often, because first orders carry welcome discounts. It isn’t a rule. If you run frequent sales for existing customers or offer subscription discounts, RC CM1 % can be lower than NC CM1 %.
Yes, if they come through as Shopify orders for the same customer. Every order after the first is returning.
See all Contribution Margin metrics →