New Customer MER (Net) measures what percentage of your new customer net sales (after discounts and refunds) is spent on advertising.
NC MER (Net) = ( Total Ad Spend ÷ NC Net Order Sales ) × 100
| Metric | Definition |
|---|
| Total Ad Spend | Combined advertising spend across all connected platforms |
| NC Net Revenue | Net order sales from new customers after discounts/refunds |
| Metadata | |
|---|
| Type | Percentage |
| Data Source | Shopify, Meta Ads, Google Ads |
| Aggregation | Ratio |
Example
Your Shopify store generated $70,000 in new customer net sales while spending $40,000 on advertising.
| Metric | Value | Calculation |
|---|
| Total Ad Spend | $40,000 | All ad platforms |
| NC Net Sales | $70,000 | After discounts/refunds |
| NC MER (Net) | 57.1% | ($40,000 ÷ $70,000) × 100 |
How It Works
NC Net MER uses new customer net sales as the revenue base, accounting for welcome discounts, first-order promos, and refunds. This gives you the most accurate view of acquisition efficiency relative to revenue actually kept from new customers.
When to Use
| Scenario | Action |
|---|
| True acquisition cost analysis | Include discount and refund impact |
| Heavy welcome offer strategies | See real MER after promo impact |
| High first-order refund rates | Understand true marketing cost |
| Setting break-even CAC targets | Ensure NC MER allows for positive margins |
| Metric | Relationship |
|---|
| NC MER | NC MER using total revenue |
| NC MER (Gross) | NC MER using gross revenue |
| MER (Net) | Net MER for all customers |
| NC Net Revenue | The denominator in this calculation |
