Returning Customer CM2: Repeat Order Variable Margin

Returning Customer CM2 measures the variable margin from repeat buyers—CM1 minus fulfillment and transaction costs for returning customer orders.

Formula

RC CM2 = RC CM1 − RC Fulfillment Costs − RC Transaction Costs

Formula Components

Metric	Definition
RC CM1	Returning customer gross margin
RC Shipping Cost	Shipping costs for returning customer orders
RC Handling Cost	Handling costs for returning customer orders
RC Gateway Cost	Payment processing fees for returning customers
customer_type = returning_customer	Filters to repeat buyers

Metadata
Type	Currency
Data Source	Shopify, Upstack Costs
Aggregation	Sum

Example

Returning customers generated $48,000 CM1 with $6,000 fulfillment and $3,000 transaction costs.

Component	Amount	Calculation
RC CM1	$48,000	After COGS
RC Fulfillment	$6,000	Shipping + handling
RC Transaction	$3,000	Gateway fees
RC CM2	$39,000	$48,000 − $9,000

How It Works

RC CM2 shows the contribution margin from returning customers after all variable per-order costs. Since these orders come without additional acquisition cost, RC CM2 flows directly to profit (minus any retention marketing and fixed costs).

When to Use

Scenario	Action
Measuring retention value	RC CM2 represents pure contribution from repeat orders
Comparing customer economics	Benchmark RC CM2 vs NC CM2
LTV calculations	Use RC CM2 for lifetime value projections
Retention investment	Determine budget for loyalty programs

Metric	Relationship
RC CM2 %	RC CM2 as a percentage of RC net revenue
NC CM2	Variable margin from new customers
LTV	Customer lifetime value

See all Contribution Margin metrics →

⌘I

​Formula

​Formula Components

​Example

​How It Works

​When to Use

​Related Metrics

Formula

Formula Components

Example

How It Works

When to Use

Related Metrics