New Customer CM2 ROAS measures how much variable margin (after COGS and fulfillment) you generate from first orders per dollar of ad spend.
New Customer CM2 ROAS = New Customer CM2 ÷ Ad Spend
| Metric | Definition |
|---|
| New Customer CM2 | Variable margin from first-time buyer orders |
| Ad Spend | Total advertising spend |
| Metadata | |
|---|
| Type | Ratio |
| Data Source | Shopify, Advertising Platforms |
| Aggregation | Ratio |
Example
Your Shopify store generates $22,000 CM2 from new customers and spends $15,000 on ads.
| Component | Value | Calculation |
|---|
| New Customer CM2 | $22,000 | First-order variable margin |
| Ad Spend | $15,000 | Marketing cost |
| New Customer CM2 ROAS | 1.47 | $22,000 ÷ $15,000 |
How It Works
New Customer CM2 ROAS shows margin-adjusted acquisition efficiency. Unlike revenue-based ROAS, this accounts for product costs and fulfillment—giving a more realistic picture of acquisition economics.
Benchmarks
| Rating | Range |
|---|
| Excellent | > 2.0 |
| Good | 1.2 – 2.0 |
| Break-even | 1.0 |
| Unprofitable | < 1.0 |
| Metric | Relationship |
|---|
| New Customer CM2 | Numerator (variable margin) |
| CM2 ROAS | Overall CM2 ROAS |
| Returning Customer CM2 ROAS | Repeat order CM2 ROAS |
