> ## 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 LTV CM1: Repeat Order Gross Margin Value

> Track returning customer LTV CM1 for your Shopify store. Measure the average repeat order gross margin from existing customers.

<Tip>
  Returning Customer LTV CM1 measures the average gross margin from repeat customer orders—the additional margin value from customer retention.
</Tip>

## Formula

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

### Formula Components

| Metric                                                                                             | Definition                            |
| -------------------------------------------------------------------------------------------------- | ------------------------------------- |
| [**Returning Customer CM1**](/reference/metrics/orders/contribution-margin/returning-customer-cm1) | Gross margin from repeat buyer orders |
| [**Returning Customers**](/reference/metrics/orders/customers/returning-customers)                 | Count of repeat buyers                |

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

***

## Example

Your Shopify store generates **\$60,000** CM1 from **800** returning customers.

| Component                      | Value    | Calculation               |
| ------------------------------ | -------- | ------------------------- |
| Returning Customer CM1         | \$60,000 | Repeat order gross margin |
| Returning Customers            | 800      | Repeat buyers             |
| **Returning Customer LTV CM1** | **\$75** | \$60,000 ÷ 800            |

***

## How It Works

Returning Customer LTV CM1 shows the gross margin contribution from repeat purchases. Since these customers are already acquired, this margin is nearly pure profit contribution (minus fulfillment).

***

## When to Use

| Scenario           | Action                               |
| ------------------ | ------------------------------------ |
| Retention value    | Measure margin from repeat purchases |
| Loyalty investment | Justify retention program costs      |
| LTV projection     | Build lifetime margin models         |
| Customer quality   | Compare repeat margin by segment     |

***

## Related Metrics

| Metric                                                                                 | Relationship               |
| -------------------------------------------------------------------------------------- | -------------------------- |
| [LTV CM1](/reference/metrics/orders/ltv/ltv-cm1)                                       | Full lifetime gross margin |
| [Returning Customer LTV CM2](/reference/metrics/orders/ltv/returning-customer-ltv-cm2) | After fulfillment          |
| [New Customer LTV CM1](/reference/metrics/orders/ltv/new-customer-ltv-cm1)             | First-order margin         |

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