Returning Customer CM2 ROAS measures how much variable margin (after COGS and fulfillment) you generate from repeat orders per dollar of ad spend.
Returning Customer CM2 ROAS = Returning Customer CM2 ÷ Ad Spend
| 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 ROAS | 3.2 | $48,000 ÷ $15,000 |
How It Works
Returning Customer CM2 ROAS shows margin-adjusted efficiency for repeat orders. Since repeat customers are already acquired, this ratio should be substantially higher than new customer CM2 ROAS.
Benchmarks
| Rating | Range |
|---|
| Excellent | > 3.5 |
| Good | 2.0 – 3.5 |
| Moderate | 1.2 – 2.0 |
| Concerning | < 1.2 |
| Metric | Relationship |
|---|
| Returning Customer CM2 | Numerator (variable margin) |
| CM2 ROAS | Overall CM2 ROAS |
| New Customer CM2 ROAS | First-order CM2 ROAS |
