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Returning Customer Total Cost measures the complete cost stack for repeat buyer orders, including all attributed costs for retention.

Formula

RC Total Cost = RC COGS + RC Fulfillment + RC Marketing + RC Agency Fees + RC Opex

Formula Components

MetricDefinition
RC COGSCOGS for returning customer orders
RC FulfillmentFulfillment costs for returning customer orders
RC MarketingMarketing spend attributed to returning customers
RC Agency FeesAgency fees attributed to returning customers
RC OpexOpex attributed to returning customers
Metadata
TypeCurrency
Data SourceShopify, Meta Ads, Google Ads, Upstack Costs
AggregationSum

Example

Your Shopify store’s returning customer orders incurred:
Cost ComponentValue
RC COGS$22,000
RC Fulfillment$4,000
RC Marketing$5,000
RC Agency Fees$1,000
RC Opex$6,000
RC Total Cost$38,000
An RC total cost of $38,000 represents your complete investment in serving returning customers.

How It Works

RC Total Cost aggregates all costs attributed to returning customer orders. Typically, returning customers have lower marketing costs since they don’t require acquisition spend, making their orders more profitable.

When to Use

ScenarioAction
Retention profitabilityCompare RC total cost to RC revenue
LTV contributionUnderstand cost efficiency of repeat orders
Budget planningAllocate resources to retention
NC vs RC comparisonCompare acquisition vs retention costs

MetricRelationship
Total CostTotal cost for all orders
NC Total CostTotal cost for new customer orders
RC RevenueRevenue generated by returning customers
RC CM3RC profit after all variable costs
See all Contribution Margin metrics →