Returning Customer CM1 %: Repeat Order Gross Margin Rate

RC CM1 % measures the gross margin percentage from returning customer orders—what percentage of repeat-order revenue remains after COGS.

Formula

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

Formula Components

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

See all Contribution Margin metrics →

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​Formula

​Formula Components

​Example

​How It Works

​When to Use

​Related Metrics

Formula

Formula Components

Example

How It Works

When to Use

Related Metrics