New Customer ROAS measures how much revenue you generate from first-time customer orders per dollar of ad spend.
New Customer ROAS = New Customer Total Revenue ÷ Ad Spend
| Metric | Definition |
|---|
| New Customer Total Revenue | Revenue 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 $50,000 from new customer orders and spends $15,000 on ads.
| Component | Value | Calculation |
|---|
| New Customer Revenue | $50,000 | First-order sales |
| Ad Spend | $15,000 | Marketing cost |
| New Customer ROAS | 3.33 | $50,000 ÷ $15,000 |
How It Works
New Customer ROAS shows acquisition efficiency at the revenue level. A ROAS of 3.33 means you’re generating $3.33 of first-order revenue for every $1 spent on ads. However, revenue doesn’t equal profit—use CM ROAS for margin-adjusted efficiency.
Benchmarks
| Rating | Range |
|---|
| Excellent | > 4.0 |
| Good | 2.5 – 4.0 |
| Moderate | 1.5 – 2.5 |
| Challenging | < 1.5 |
| Metric | Relationship |
|---|
| New Customer Total Revenue | Numerator (revenue) |
| ROAS | Overall return on ad spend |
| Returning Customer ROAS | Repeat order ROAS |
| New Customer CM2 ROAS | Margin-adjusted ROAS |
