> ## Documentation Index
> Fetch the complete documentation index at: https://docs.upstackdata.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Returning Customer Contribution Margin %: Repeat Buyer Profitability Rate

> Track the percentage of returning customer net revenue remaining as contribution margin. Measure repeat buyer profitability rate.

<Tip>
  Percentage of returning customer net revenue remaining as contribution margin.
</Tip>

## Formula

<Info>
  **Returning Customer Contribution Margin %** = ( **Returning Customer Contribution Margin** ÷ **Returning Customer Net Revenue** ) × 100
</Info>

### Formula Components

| Metric                                                                                                                             | Definition                                                                                |
| ---------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------- |
| [**Returning Customer Contribution Margin**](/reference/metrics/orders/contribution-margin/returning-customer-contribution-margin) | Profit from returning customers after COGS, fulfillment, transaction, and marketing costs |
| [**Returning Customer Net Revenue**](/reference/metrics/orders/revenue/returning-customer-net-revenue)                             | Revenue from returning customers after discounts and refunds                              |
| [**customer\_type = returning\_customer**](/data-dictionary/measures-and-dimensions#visitor-dimensions)                            | Filters to orders from customers who have purchased before                                |

| Metadata        |                                                                      |
| --------------- | -------------------------------------------------------------------- |
| **Type**        | Percentage                                                           |
| **Data Source** | [Shopify](/sources/shopify), [Upstack Costs](/sources/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 |

***

## Related Metrics

| Metric                                                                                                                         | Relationship                                        |
| ------------------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------- |
| [Returning Customer Contribution Margin](/reference/metrics/orders/contribution-margin/returning-customer-contribution-margin) | The dollar amount numerator of this percentage      |
| [Returning Customer Net Revenue](/reference/metrics/orders/revenue/returning-customer-net-revenue)                             | The denominator; total RC revenue after adjustments |
| [New Customer Contribution Margin %](/reference/metrics/orders/contribution-margin/new-customer-contribution-margin-percent)   | Compare acquisition vs retention profitability      |
| [Contribution Margin %](/reference/metrics/orders/contribution-margin/contribution-margin-percent)                             | Blended margin across all customers                 |

[See all Contribution Margin metrics →](/reference/metrics/orders/contribution-margin)