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New Customer CM1 ROAS measures how much gross margin from first-time buyer orders you earn for every dollar spent on advertising.

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Formula

NC CM1 ROAS = New Customer CM1 ÷ Ad Spend

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Formula Components

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Example

Your Shopify store generated $45,000 in new customer CM1 while spending $50,000 on advertising. A NC CM1 ROAS of 0.9x means you earn $0.90 in gross margin from new customers for every $1 spent on advertising.

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How It Works

NC CM1 ROAS isolates the gross margin contribution from new customer acquisitions relative to advertising spend. This helps you understand if your acquisition efforts are profitable at the gross margin level before accounting for fulfillment and marketing costs.

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When to Use

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