Returning Customer ROAS measures how much revenue you generate from repeat customer orders per dollar of ad spend.
Returning Customer ROAS = Returning Customer Total Revenue ÷ Ad Spend
| Metric | Definition |
|---|
| Returning Customer Total Revenue | Revenue from repeat buyer orders |
| Ad Spend | Total advertising spend |
| Metadata | |
|---|
| Type | Ratio |
| Data Source | Shopify, Advertising Platforms |
| Aggregation | Ratio |
Example
Your Shopify store generates $100,000 from returning customer orders and spends $15,000 on ads.
| Component | Value | Calculation |
|---|
| Returning Customer Revenue | $100,000 | Repeat order sales |
| Ad Spend | $15,000 | Marketing cost |
| Returning Customer ROAS | 6.67 | $100,000 ÷ $15,000 |
How It Works
Returning Customer ROAS shows how efficiently your ad spend drives repeat revenue. This is typically higher than New Customer ROAS because repeat customers are already acquired—they just need to be retained or reminded.
Benchmarks
| Rating | Range |
|---|
| Excellent | > 8.0 |
| Good | 5.0 – 8.0 |
| Moderate | 3.0 – 5.0 |
| Concerning | < 3.0 |
| Metric | Relationship |
|---|
| Returning Customer Total Revenue | Numerator (revenue) |
| ROAS | Overall return on ad spend |
| New Customer ROAS | First-order ROAS |
