> ## 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.

# New Customer LTV CM1: First-Order Gross Margin Value

> Track new customer LTV CM1 for your Shopify store. Measure the average first-order gross margin from newly acquired customers.

<Tip>
  New Customer LTV CM1 measures the average gross margin from first-time customer orders—the starting margin value before fulfillment costs.
</Tip>

## Formula

<Info>
  **New Customer LTV CM1** = **New Customer CM1** ÷ **New Customers**
</Info>

### Formula Components

| Metric                                                                                 | Definition                                |
| -------------------------------------------------------------------------------------- | ----------------------------------------- |
| [**New Customer CM1**](/reference/metrics/orders/contribution-margin/new-customer-cm1) | Gross margin from first-time buyer orders |
| [**New Customers**](/reference/metrics/orders/customers/new-customers)                 | Count of first-time buyers                |

| Metadata        |                                                                                      |
| --------------- | ------------------------------------------------------------------------------------ |
| **Type**        | Currency                                                                             |
| **Data Source** | [Shopify](/sources/catalog/shopify), [Upstack Costs](/sources/catalog/upstack-costs) |
| **Aggregation** | Average                                                                              |

***

## Example

Your Shopify store generates **\$30,000** CM1 from **500** new customers.

| Component                | Value    | Calculation              |
| ------------------------ | -------- | ------------------------ |
| New Customer CM1         | \$30,000 | First-order gross margin |
| New Customers            | 500      | First-time buyers        |
| **New Customer LTV CM1** | **\$60** | \$30,000 ÷ 500           |

***

## How It Works

New Customer LTV CM1 shows the gross margin contribution from each acquired customer's first order. This helps set target CPAs based on first-order margin rather than revenue.

***

## When to Use

| Scenario           | Action                                              |
| ------------------ | --------------------------------------------------- |
| CPA targeting      | New Customer LTV CM1 sets margin-based CPA ceiling  |
| Product strategy   | Higher-margin products improve New Customer LTV CM1 |
| Channel comparison | Compare first-order margin by acquisition channel   |
| Margin analysis    | Understand first-order economics                    |

***

## Related Metrics

| Metric                                                                             | Relationship               |
| ---------------------------------------------------------------------------------- | -------------------------- |
| [LTV CM1](/reference/metrics/orders/ltv/ltv-cm1)                                   | Full lifetime gross margin |
| [New Customer LTV CM2](/reference/metrics/orders/ltv/new-customer-ltv-cm2)         | After fulfillment          |
| [New Customer CM1](/reference/metrics/orders/contribution-margin/new-customer-cm1) | Total first-order margin   |
| [New Customer CPA](/reference/metrics/orders/performance/cac)                      | Acquisition cost           |

[See all LTV metrics →](/reference/metrics/orders/ltv)