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Net revenue minus the order costs and marketing cost of returning customer orders, and minus your ad spend. In the app it’s Returning Customer CM3.

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Formula

Returning Customer Contribution Margin = RC CM2 − RC Marketing Cost − Ad Spend
In the app this measure is Returning Customer CM3 (Contribution Margin), id orders.returning_customer_cm3.

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Formula Components

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Example

Your store’s returning customer orders in March:

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How It Works

Upstack starts from the net revenue of returning customer orders and subtracts their COGS, fulfillment and transaction costs. Those come from returning customer orders only, using the customer type on each order. RC Marketing Cost is subtracted next. Its page explains which costs it includes. Ad spend is different. Upstack can’t tell which ad spend went to returning customer orders, so it subtracts all of it. The same ad spend is taken off the new customer version too, so adding the two together doesn’t give total CM3. Recurring and variable marketing costs are different: they’re split between the two versions by net revenue, so only ad spend is counted twice.

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When to Use

See all Contribution Margin metrics →