Returning Customer CM2 measures the variable margin from repeat buyers—CM1 minus fulfillment and transaction costs for returning customer orders.
RC CM2 = RC CM1 − RC Fulfillment Costs − RC Transaction Costs
| 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 |
