Returning Customer CM4 measures the operating profit from repeat buyers—CM3 minus agency fees, OPEX, and other costs for returning customer orders.
RC CM4 = RC CM3 − RC Agency Fees − RC OPEX − RC Other Costs
| Metric | Definition |
|---|
| RC CM3 | Returning customer contribution margin after marketing |
| RC Agency Fees | Agency fees allocated to returning customer orders |
| RC OPEX | Operating expenses allocated to returning customer orders |
| RC Other Costs | Other costs allocated to returning customer orders |
| customer_type = returning_customer | Filters to repeat buyers |
| Metadata | |
|---|
| Type | Currency |
| Data Source | Shopify, Upstack Costs |
| Aggregation | Sum |
Example
Returning customers generated $27,500 CM3 with $3,000 agency fees, $10,000 OPEX, and $1,500 other costs.
| Component | Amount | Calculation |
|---|
| RC CM3 | $27,500 | After marketing |
| RC Agency Fees | $3,000 | Agency allocation |
| RC OPEX | $10,000 | Operating expenses |
| RC Other Costs | $1,500 | Miscellaneous |
| RC CM4 | $13,000 | $27,500 − $14,500 |
How It Works
RC CM4 shows the true operating profit from returning customers after all costs. Since repeat orders don’t require acquisition cost, RC CM4 typically represents the most profitable segment of your business.
When to Use
| Scenario | Action |
|---|
| Measuring retention profitability | Track RC CM4 as the core profit engine |
| Comparing segments | Benchmark RC CM4 vs NC CM4 |
| LTV modeling | Use RC CM4 for lifetime value projections |
| Retention investment | Validate loyalty program ROI against RC CM4 |
| Metric | Relationship |
|---|
| RC CM4 % | RC CM4 as a percentage of RC net revenue |
| NC CM4 | Operating profit from new customers |
| LTV | Customer lifetime value |
