Formula
Returning Customer Contribution Margin % = ( Returning Customer Contribution Margin ÷ Returning Customer Net Revenue ) × 100
Formula Components
Example
Your returning customers generated $89,640 in net revenue with $31,374 in contribution margin, yielding a 35% margin rate: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. Upstack calculates the rate from order data and ad spend. The numerator subtracts all of your ad spend, not a returning customer share. Recurring expenses and variable costs in the Marketing category aren’t included, so with those configured it won’t equal dollar RC CM3 ÷ RC net revenue.When to Use
Related Metrics
See all Contribution Margin metrics →