Returning Customer MER (Net) measures what percentage of your returning customer net sales (after discounts and refunds) is spent on advertising.
RC MER (Net) = ( Total Ad Spend ÷ RC Net Order Sales ) × 100
| Metric | Definition |
|---|
| Total Ad Spend | Combined advertising spend across all connected platforms |
| RC Net Revenue | Net order sales from returning customers after discounts/refunds |
| Metadata | |
|---|
| Type | Percentage |
| Data Source | Shopify, Meta Ads, Google Ads |
| Aggregation | Ratio |
Example
Your Shopify store generated $110,000 in returning customer net sales while spending $40,000 on advertising.
| Metric | Value | Calculation |
|---|
| Total Ad Spend | $40,000 | All ad platforms |
| RC Net Sales | $110,000 | After discounts/refunds |
| RC MER (Net) | 36.4% | ($40,000 ÷ $110,000) × 100 |
How It Works
RC Net MER uses returning customer net sales as the revenue base, accounting for loyalty discounts and refunds. This gives you the most accurate view of retention efficiency relative to revenue actually kept from repeat customers.
When to Use
| Scenario | Action |
|---|
| True retention cost analysis | Include discount and refund impact |
| Heavy loyalty discount strategies | See real MER after promo impact |
| High repeat customer refund rates | Understand true marketing cost |
| Setting retention budget limits | Ensure RC MER allows for positive margins |
| Metric | Relationship |
|---|
| RC MER | RC MER using total revenue |
| RC MER (Gross) | RC MER using gross revenue |
| MER (Net) | Net MER for all customers |
| RC Net Revenue | The denominator in this calculation |
