RC CM2 % measures the percentage of returning customer net revenue remaining after all variable costs—COGS, fulfillment, and transaction fees.
RC CM2 % = ( RC CM2 ÷ RC Net Revenue ) × 100
| Metric | Definition |
|---|
| RC CM2 | Returning customer variable margin |
| RC Net Revenue | Net revenue from returning customers |
| Metadata | |
|---|
| Type | Percentage |
| Data Source | Shopify, Upstack Costs |
| Aggregation | Ratio |
Example
Returning customers generated $39,000 CM2 from $75,000 net revenue.
| Component | Value | Calculation |
|---|
| RC CM2 | $39,000 | After variable costs |
| RC Net Revenue | $75,000 | Revenue base |
| RC CM2 % | 52% | $39,000 ÷ $75,000 × 100 |
How It Works
RC CM2 % shows what percentage of returning customer revenue remains after variable costs. This is pure contribution margin rate—no acquisition cost dilutes it. Compare against NC CM2 % to understand segment profitability differences.
When to Use
| Scenario | Action |
|---|
| Comparing customer economics | Benchmark RC CM2 % vs NC CM2 % |
| Retention investment planning | Use RC CM2 % to justify loyalty spend |
| LTV modeling | Apply RC CM2 % to projected repeat purchases |
| Efficiency tracking | Monitor variable cost trends for repeat buyers |
| Metric | Relationship |
|---|
| RC CM2 | Dollar amount that RC CM2 % is based on |
| NC CM2 % | Variable margin rate for new customers |
| CM2 % | Overall variable margin rate |
