Returning Customer CM2 per Order: Repeat Order Variable Margin

RC CM2 per Order measures the average variable margin per returning customer order—what each repeat buyer order contributes after variable costs.

Formula

RC CM2 per Order = RC CM2 ÷ Returning Customer Orders

Formula Components

Metric	Definition
RC CM2	Returning customer variable margin
Returning Customers	Count of returning customer orders

Metadata
Type	Currency
Data Source	Shopify, Upstack Costs
Aggregation	Average

Example

Returning customers generated $39,000 CM2 from 750 orders.

Component	Value	Calculation
RC CM2	$39,000	Variable margin
RC Orders	750	Repeat orders
RC CM2 per Order	$52	$39,000 ÷ 750

How It Works

RC CM2 per Order shows the variable margin from each returning customer order. Since these orders don’t carry acquisition cost, RC CM2 per Order flows directly toward profit. This is often higher than NC CM2 per Order due to lower discount usage.

When to Use

Scenario	Action
Comparing segments	Benchmark against NC CM2 per Order
LTV modeling	Use RC CM2 per Order for lifetime value projections
Retention investment	Determine budget for loyalty programs
Tracking retention quality	Monitor RC CM2 per Order trends

Metric	Relationship
RC CM2	Total returning customer variable margin
NC CM2 per Order	Variable margin per new customer order
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