> ## Documentation Index
> Fetch the complete documentation index at: https://docs.upstackdata.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Returning Customer CM1 %: Repeat Order Gross Margin Rate

> Track Returning Customer CM1 percentage for your Shopify store. Measure gross margin rate from repeat buyers.

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

## Formula

<Info>
  **RC CM1 %** = ( **RC CM1** ÷ **RC Net Revenue** ) × 100
</Info>

### Formula Components

| Metric                                                                                 | Definition                                  |
| -------------------------------------------------------------------------------------- | ------------------------------------------- |
| [**RC CM1**](/reference/metrics/orders/contribution-margin/returning-customer-cm1)     | Gross margin from returning customer orders |
| [**RC Net Revenue**](/reference/metrics/orders/revenue/returning-customer-net-revenue) | Net revenue from returning customers        |

| Metadata        |                                                                      |
| --------------- | -------------------------------------------------------------------- |
| **Type**        | Percentage                                                           |
| **Data Source** | [Shopify](/sources/shopify), [Upstack Costs](/sources/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                |

***

## Related Metrics

| Metric                                                                             | Relationship                            |
| ---------------------------------------------------------------------------------- | --------------------------------------- |
| [RC CM1](/reference/metrics/orders/contribution-margin/returning-customer-cm1)     | Dollar amount that RC CM1 % is based on |
| [NC CM1 %](/reference/metrics/orders/contribution-margin/new-customer-cm1-percent) | Gross margin rate for new customers     |
| [CM1 %](/reference/metrics/orders/contribution-margin/cm1-percent)                 | Overall gross margin rate               |

[See all Contribution Margin metrics →](/reference/metrics/orders/contribution-margin)