New Customer RAAD %: First-Order Revenue Retention Rate

New Customer RAAD % measures what share of first-order revenue remains after subtracting ad spend—showing acquisition efficiency as a margin.

Formula

New Customer RAAD % = ( New Customer Total Revenue − Ad Spend ) ÷ New Customer Total Revenue × 100

Formula Components

Metric	Definition
New Customer Total Revenue	Revenue from first-time buyer orders
Ad Spend	Total advertising spend

Metadata
Type	Percentage
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
RAAD Amount	$35,000	$50,000 − $15,000
New Customer RAAD %	70%	$35,000 ÷ $50,000

How It Works

New Customer RAAD % expresses acquisition efficiency as a margin. Higher percentages mean you retain more of first-order revenue after advertising costs. This helps evaluate if your acquisition costs are sustainable relative to first-order value.

Benchmarks

Rating	Range
Excellent	> 60%
Good	40% – 60%
Moderate	20% – 40%
Challenging	< 20%

Note: First-order margins are typically lower than overall RAAD % because acquisition costs are concentrated on new customers.

Metric	Relationship
New Customer RAAD	Absolute amount
RAAD %	Overall revenue retention rate
New Customer CPA	Cost to acquire each customer

See all Performance metrics →

​Formula

​Formula Components

​Example

​How It Works

​Benchmarks

​Related Metrics

Formula

Formula Components

Example

How It Works

Benchmarks

Related Metrics