New Customer ROAS: First-Order Return on Ad Spend

New Customer ROAS measures how much revenue you generate from first-time customer orders per dollar of ad spend.

Formula

New Customer ROAS = New Customer Total Revenue ÷ Ad Spend

Formula Components

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

Note: Required ROAS varies by margin structure. High-margin products need lower ROAS to be profitable.

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

See all Performance metrics →

ROAS MER

⌘I

​Formula

​Formula Components

​Example

​How It Works

​Benchmarks

​Related Metrics

Formula

Formula Components

Example

How It Works

Benchmarks

Related Metrics