Returning Customer CM4: Repeat Order Operating Profit

Returning Customer CM4 is RC CM3 minus the agency fees, opex, and other costs charged to repeat orders. RC CM3 has already subtracted all of your ad spend, and the overhead here is the returning customer share, based on net revenue.

Formula

Formula Components

Metric	Definition
RC CM3	RC CM2 − RC Marketing Cost − total ad spend
RC Agency Fees	Agency order fees on repeat orders + returning customer share of agency recurring expenses
RC Opex	Opex order fees on repeat orders + returning customer share of Opex recurring and variable costs
RC Total Other Cost	Other-category order fees on repeat orders + returning customer share of Other recurring expenses

Metadata
Type	Currency
Data Source	Shopify, Cost Settings, ad platforms
Aggregation	Sum

Example

Returning customers generated $27,500 RC CM3 (after all ad spend), with $3,000 RC Agency Fees, $10,000 RC Opex, and $1,500 RC Total Other Cost.

Component	Amount	Calculation
RC CM3	$27,500	After marketing and all ad spend
RC Agency Fees	$3,000	Repeat-order fees + share of retainers
RC Opex	$10,000	Repeat-order fees + share of overhead
RC Total Other Cost	$1,500	Repeat-order fees + share of Other expenses
RC CM4	$13,000	$27,500 − $14,500

How It Works

Revenue and order-level costs come from returning customer orders only. Recurring expenses and variable costs are split between new and returning customers by net revenue for the same date, so RC CM4 carries only the returning customer share. See how the split works.

Ad spend is not split. RC CM3 subtracts all of it, and so does NC CM4. So NC CM4 + RC CM4 is less than CM4 by one copy of ad spend.

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

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, without recurring or variable costs
NC CM4	Operating profit from new customers
CM4 (Operating Profit)	Store-wide operating profit, ad spend counted once
LTV	Customer lifetime value

Metric

Relationship

RC CM4 %

RC CM4 as a percentage of RC net revenue, without recurring or variable costs

NC CM4

Operating profit from new customers

CM4 (Operating Profit)

Store-wide operating profit, ad spend counted once

LTV

Customer lifetime value

METRICS

Returning Customer CM4

Formula

Formula Components

Example

How It Works

When to Use

​Formula

​Formula Components

​Example

​How It Works

​When to Use

​Related Metrics

Formula

Formula Components

Example

How It Works

When to Use

Related Metrics