> ## 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.

# Returning Customer CM1 ROAS: Retention Gross Margin Efficiency

> Track returning customer gross margin return on ad spend. Measure how much CM1 profit from repeat buyers you generate per ad dollar.

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

## Formula

<Info>
  **RC CM1 ROAS** = **Returning Customer CM1** ÷ **Ad Spend**
</Info>

### Formula Components

| Metric                                                                                                             | Definition                                             |
| ------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------ |
| [**Returning Customer CM1**](/reference/metrics/orders/contribution-margin/returning-customer-contribution-margin) | Gross margin from returning customer orders after COGS |
| **Ad Spend**                                                                                                       | Total advertising spend across all platforms           |

| Metadata        |                                                                                                                           |
| --------------- | ------------------------------------------------------------------------------------------------------------------------- |
| **Type**        | Multiplier                                                                                                                |
| **Data Source** | [Shopify](/sources/catalog/shopify), [Meta Ads](/sources/catalog/facebook-ads), [Google Ads](/sources/catalog/google-ads) |
| **Aggregation** | Ratio                                                                                                                     |

***

## Example

Your Shopify store generated **\$105,000** in returning customer CM1 while spending **\$50,000** on advertising.

| Metric                 | Value     | Calculation              |
| ---------------------- | --------- | ------------------------ |
| Returning Customer CM1 | \$105,000 | RC Net Revenue − RC COGS |
| Total Ad Spend         | \$50,000  | All ad platforms         |
| RC CM1 ROAS            | 2.1x      | \$105,000 ÷ \$50,000     |

A RC CM1 ROAS of 2.1x means you earn \$2.10 in gross margin from returning customers for every \$1 spent on advertising.

***

## 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.

***

## When to Use

| Scenario                               | Action                                                |
| -------------------------------------- | ----------------------------------------------------- |
| Evaluating remarketing campaigns       | Compare RC CM1 ROAS to NC CM1 ROAS                    |
| Retention program ROI                  | Measure gross margin from loyalty efforts             |
| Product-mix analysis for repeat buyers | See if returning customers buy higher-margin products |
| Budget split decisions                 | Allocate spend based on RC vs NC efficiency           |

***

## Related Metrics

| Metric                                                                           | Relationship                                         |
| -------------------------------------------------------------------------------- | ---------------------------------------------------- |
| [CM1 ROAS](/reference/metrics/orders/performance/cm1-roas)                       | Total CM1 ROAS including all customers               |
| [RC CM2 ROAS](/reference/metrics/orders/performance/returning-customer-cm2-roas) | Includes fulfillment costs for returning customers   |
| [RC CM3 ROAS](/reference/metrics/orders/performance/returning-customer-cm3-roas) | Includes all marketing costs for returning customers |
| [NC CM1 ROAS](/reference/metrics/orders/performance/new-customer-cm1-roas)       | Gross margin efficiency for new customers            |

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