Returning Customer MER measures what percentage of your returning customer order revenue is spent on advertising. This is a key metric for understanding retention marketing efficiency.
RC MER = ( Total Ad Spend ÷ Returning Customer Order Revenue ) × 100
| Metric | Definition |
|---|
| Total Ad Spend | Combined advertising spend across all connected platforms |
| Returning Customer Revenue | Total revenue from repeat buyer orders |
| Metadata | |
|---|
| Type | Percentage |
| Data Source | Shopify, Meta Ads, Google Ads |
| Aggregation | Ratio |
Example
Your Shopify store generated $120,000 in returning customer revenue while spending $40,000 on advertising.
| Metric | Value | Calculation |
|---|
| Total Ad Spend | $40,000 | All ad platforms |
| Returning Customer Revenue | $120,000 | Repeat buyers |
| RC MER | 33.3% | ($40,000 ÷ $120,000) × 100 |
How It Works
RC MER isolates marketing efficiency for customer retention. Since returning customers are typically cheaper to convert than new customers, RC MER is usually lower than NC MER. The difference reveals how much value your existing customer base adds to blended efficiency.
When to Use
| Scenario | Action |
|---|
| Retention marketing evaluation | Measure remarketing efficiency |
| Budget allocation decisions | Compare RC MER to NC MER for optimal split |
| Loyalty program ROI | Understand cost to generate repeat purchases |
| Identifying retention efficiency | Lower RC MER indicates strong customer loyalty |
| Metric | Relationship |
|---|
| MER | Total MER including all customers |
| RC MER (Gross) | RC MER using gross revenue |
| RC MER (Net) | RC MER using net revenue |
| NC MER | Marketing efficiency for new customers |
