> ## 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 RAAD %: First-Order Revenue Retention Rate

> Track new customer RAAD percentage for your Shopify store. Measure what share of first-order revenue remains after ad spend.

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

## Formula

<Info>
  **New Customer RAAD %** = ( **New Customer Total Revenue** − **Ad Spend** ) ÷ **New Customer Total Revenue** × 100
</Info>

### Formula Components

| Metric                                                                                         | Definition                           |
| ---------------------------------------------------------------------------------------------- | ------------------------------------ |
| [**New Customer Total Revenue**](/reference/metrics/orders/revenue/new-customer-total-revenue) | Revenue from first-time buyer orders |
| [**Ad Spend**](/reference/metrics/advertising/blended/blended-spend)                           | Total advertising spend              |

| Metadata        |                                                                                             |
| --------------- | ------------------------------------------------------------------------------------------- |
| **Type**        | Percentage                                                                                  |
| **Data Source** | [Shopify](/sources/catalog/shopify), [Advertising Platforms](/sources/catalog/facebook-ads) |
| **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.

***

## Related Metrics

| Metric                                                                             | Relationship                   |
| ---------------------------------------------------------------------------------- | ------------------------------ |
| [New Customer RAAD](/reference/metrics/orders/performance/new-customer-total-raad) | Absolute amount                |
| [RAAD %](/reference/metrics/orders/performance/total-raad-percent)                 | Overall revenue retention rate |
| [New Customer CPA](/reference/metrics/orders/performance/cac)                      | Cost to acquire each customer  |

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