> ## 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 MER: First-Order Marketing Efficiency

> Track New Customer MER for your Shopify store. Measure marketing efficiency for acquiring first-time buyers.

<Tip>
  New Customer MER measures what percentage of new customer order revenue is spent on advertising—marketing efficiency for customer acquisition.
</Tip>

## Formula

<Info>
  **NC MER** = ( **Ad Spend** ÷ **NC Order Revenue** ) × 100
</Info>

### Formula Components

| Metric                                                                                       | Definition                       |
| -------------------------------------------------------------------------------------------- | -------------------------------- |
| **Ad Spend**                                                                                 | Total advertising spend          |
| [**NC Total Revenue**](/reference/metrics/orders/revenue/new-customer-total-revenue)         | Revenue from new customer orders |
| [**customer\_type = new\_customer**](/data-dictionary/measures-and-dimensions#customer-type) | Filters to first-time buyers     |

| Metadata        |                                                                                                                           |
| --------------- | ------------------------------------------------------------------------------------------------------------------------- |
| **Type**        | Percentage                                                                                                                |
| **Data Source** | [Shopify](/sources/catalog/shopify), [Meta Ads](/sources/catalog/facebook-ads), [Google Ads](/sources/catalog/google-ads) |
| **Aggregation** | Ratio                                                                                                                     |

***

## Example

Your store spent **\$20,000** on ads and new customers generated **\$80,000** in revenue.

| Component  | Value    | Calculation               |
| ---------- | -------- | ------------------------- |
| Ad Spend   | \$20,000 | Total advertising         |
| NC Revenue | \$80,000 | First-time buyer revenue  |
| **NC MER** | **25%**  | \$20,000 ÷ \$80,000 × 100 |

***

## How It Works

NC MER shows marketing efficiency specifically for customer acquisition. A 25% NC MER means 25% of new customer revenue goes to advertising. Compare against RC MER to see how much more efficient repeat customers are.

***

## When to Use

| Scenario                         | Action                                               |
| -------------------------------- | ---------------------------------------------------- |
| Measuring acquisition efficiency | Track NC MER to optimize acquisition spend           |
| Comparing customer segments      | NC MER vs RC MER shows retention value               |
| Setting CAC targets              | NC MER helps determine sustainable acquisition costs |
| Channel optimization             | Compare NC MER across acquisition channels           |

***

## Related Metrics

| Metric                                                                 | Relationship                       |
| ---------------------------------------------------------------------- | ---------------------------------- |
| [MER](/reference/metrics/orders/performance/mer)                       | Overall marketing efficiency ratio |
| [RC MER](/reference/metrics/orders/performance/returning-customer-mer) | MER for returning customers        |
| [CAC](/reference/metrics/orders/performance/cac)                       | Cost to acquire new customers      |

[See all Performance metrics →](/reference/metrics/orders/performance)