Percentage of returning customer net revenue remaining as contribution margin.
Returning Customer Contribution Margin % = ( Returning Customer Contribution Margin ÷ Returning Customer Net Revenue ) × 100
| Metric | Definition |
|---|
| Returning Customer Contribution Margin | Profit from returning customers after COGS, fulfillment, transaction, and marketing costs |
| Returning Customer Net Revenue | Revenue from returning customers after discounts and refunds |
| customer_type = returning_customer | Filters to orders from customers who have purchased before |
| Metadata | |
|---|
| Type | Percentage |
| Data Source | Shopify, Upstack Costs |
| Aggregation | Ratio |
Example
Your returning customers generated $89,640 in net revenue with $31,374 in contribution margin, yielding a 35% margin rate:
| Metric | Value |
|---|
| RC Net Revenue | $89,640 |
| RC Contribution Margin | $31,374 |
| RC Contribution Margin % | 35% |
How It Works
Returning Customer Contribution Margin % measures what share of repeat buyer revenue becomes profit after all variable costs. A higher percentage indicates returning customers are more profitable per dollar of revenue, helping you evaluate retention economics.
When to Use
| Scenario | Action |
|---|
| Compare customer segments | Benchmark RC margin % vs NC margin % to see retention profitability |
| Evaluate retention programs | Track if loyalty discounts erode repeat buyer margins |
| Assess marketing efficiency | Higher margin % means more profit per marketing dollar on retention |
| Set pricing strategy | Low margins may indicate need for price adjustments on repeat orders |
| Metric | Relationship |
|---|
| Returning Customer Contribution Margin | The dollar amount numerator of this percentage |
| Returning Customer Net Revenue | The denominator; total RC revenue after adjustments |
| New Customer Contribution Margin % | Compare acquisition vs retention profitability |
| Contribution Margin % | Blended margin across all customers |
