> ## 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 CM2: Repeat Order Variable Margin Value

> Track returning customer LTV CM2 for your Shopify store. Measure the average repeat order variable margin from existing customers.

<Tip>
  Returning Customer LTV CM2 measures the average variable margin from repeat customer orders—nearly pure profit since no acquisition cost is needed.
</Tip>

## Formula

<Info>
  **Returning Customer LTV CM2** = **Returning Customer CM2** ÷ **Returning Customers**
</Info>

### Formula Components

| Metric                                                                                             | Definition                               |
| -------------------------------------------------------------------------------------------------- | ---------------------------------------- |
| [**Returning Customer CM2**](/reference/metrics/orders/contribution-margin/returning-customer-cm2) | Variable 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 **\$48,000** CM2 from **800** returning customers.

| Component                      | Value    | Calculation                  |
| ------------------------------ | -------- | ---------------------------- |
| Returning Customer CM2         | \$48,000 | Repeat order variable margin |
| Returning Customers            | 800      | Repeat buyers                |
| **Returning Customer LTV CM2** | **\$60** | \$48,000 ÷ 800               |

***

## How It Works

Returning Customer LTV CM2 shows the variable margin from repeat purchases after COGS and fulfillment. Since no acquisition cost is needed, this is largely contribution to profit.

***

## When to Use

| Scenario            | Action                                     |
| ------------------- | ------------------------------------------ |
| Retention ROI       | Compare to retention marketing costs       |
| LTV modeling        | Key input for full LTV calculations        |
| Segment analysis    | Compare repeat value across customer types |
| Loyalty program ROI | Measure margin uplift from programs        |

***

## Related Metrics

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

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