Cohort CM1: Gross Margin per Customer by Cohort

Cumulative gross margin (net revenue minus COGS) per customer over time, showing profit before fulfillment and marketing costs.

Metric	Definition
Cumulative CM1	Total gross margin (Net Revenue − COGS) from cohort orders
Cohort Customers	Number of customers in the acquisition cohort

Metric

Definition

Cumulative CM1

Total gross margin (Net Revenue − COGS) from cohort orders

Cohort Customers

Number of customers in the acquisition cohort

Metadata
Type	Currency
Data Source	Shopify, Upstack Costs
Aggregation	Average

Metadata

Type

Currency

Data Source

Shopify, Upstack Costs

Aggregation

Average

Period	Cumulative CM1/Customer	Margin %
Month 1	$28	35%
Month 3	$48	36%
Month 6	$72	37%
Month 12	$105	38%

Period

Cumulative CM1/Customer

Margin %

Month 1

$28

35%

Month 3

$48

36%

Month 6

$72

37%

Month 12

$105

38%

How It Works

Cohort CM1 tracks the gross profit generated per customer after subtracting cost of goods sold. This reveals how much profit each cohort generates before fulfillment and marketing expenses. Higher CM1 cohorts can support greater acquisition spend. COGS is automatically pulled from your Shopify product data.

Scenario	Action
Setting CAC targets	CM1 provides the ceiling for acquisition spend
Evaluating product mix	Cohorts buying higher-margin products show better CM1
Forecasting profitability	Project profit contribution by cohort maturity
Comparing to CM2	Understand fulfillment impact on margins

Scenario

Action

Setting CAC targets

CM1 provides the ceiling for acquisition spend

Evaluating product mix

Cohorts buying higher-margin products show better CM1

Forecasting profitability

Project profit contribution by cohort maturity

Comparing to CM2

Understand fulfillment impact on margins

Metric	Relationship
Cohort CM2	CM2 subtracts fulfillment costs from CM1
Contribution Margin	Non-cohort contribution margin
COGS	The cost component subtracted from revenue
Cohort Net Revenue	Revenue before COGS deduction

Metric

Relationship

Cohort CM2

CM2 subtracts fulfillment costs from CM1

Contribution Margin

Non-cohort contribution margin

COGS

The cost component subtracted from revenue

Cohort Net Revenue

Revenue before COGS deduction

METRICS

Cohort CM1: Gross Margin per Customer by Cohort

Formula

Formula Components

Example

How It Works

When to Use

​Formula

​Formula Components

​Example

​How It Works

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​Related Metrics

Formula

Formula Components

Example

How It Works

When to Use

Related Metrics