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Returning Customer CM1 ROAS measures how much gross margin from repeat buyer orders you earn for every dollar spent on advertising.

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Formula

RC CM1 ROAS = Returning Customer CM1 ÷ Ad Spend

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Formula Components

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Example

Your Shopify store generated $105,000 in returning customer CM1 while spending $50,000 on advertising. A RC CM1 ROAS of 2.1x means you earn $2.10 in gross margin from returning customers for every $1 spent on advertising.

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How It Works

RC CM1 ROAS isolates the gross margin contribution from repeat customer purchases relative to advertising spend. Returning customers typically have higher CM1 ROAS than new customers because remarketing costs are often lower.

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When to Use

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