Returning Customer CM2 MER: Repeat Order Variable Margin Efficiency

Returning Customer CM2 MER measures how much variable margin (after COGS and fulfillment) you generate from repeat orders per dollar of ad spend.

Formula

Returning Customer CM2 MER = Returning Customer CM2 ÷ Ad Spend

Formula Components

Metric	Definition
Returning Customer CM2	Variable margin from repeat buyer orders
Ad Spend	Total advertising spend

Metadata
Type	Ratio
Data Source	Shopify, Advertising Platforms
Aggregation	Ratio

Example

Your Shopify store generates $48,000 CM2 from returning customers and spends $15,000 on ads.

Component	Value	Calculation
Returning Customer CM2	$48,000	Repeat order variable margin
Ad Spend	$15,000	Marketing cost
Returning Customer CM2 MER	3.2	$48,000 ÷ $15,000

How It Works

Returning Customer CM2 MER shows variable margin efficiency for repeat orders. Since returning customers don’t require acquisition costs, this ratio is typically higher than the new customer equivalent.

Benchmarks

Rating	Range
Excellent	> 3.5
Good	2.0 – 3.5
Moderate	1.2 – 2.0
Concerning	< 1.2

Strong returning customer CM2 MER indicates healthy repeat purchase economics.

Metric	Relationship
Returning Customer CM2	Numerator (variable margin)
CM2 MER	Overall CM2 efficiency
New Customer CM2 MER	First-order efficiency

See all Performance metrics →

​Formula

​Formula Components

​Example

​How It Works

​Benchmarks

​Related Metrics

Formula

Formula Components

Example

How It Works

Benchmarks

Related Metrics