Returning Customer RAAD: Repeat Order Revenue After Ad Spend

Returning Customer RAAD measures returning customer order revenue minus advertising spend—what remains from repeat order revenue after paying for ads.

Formula

RC RAAD = RC Total Order Revenue − Ad Spend

Formula Components

Metric	Definition
RC Total Revenue	Total revenue from returning customer orders
Ad Spend	Total advertising spend across platforms
customer_type = returning_customer	Filters to repeat buyers

Metadata
Type	Currency
Data Source	Shopify, Meta Ads, Google Ads
Aggregation	Sum

Example

Returning customers generated $120,000 revenue and you spent $25,000 on ads.

Component	Amount	Calculation
RC Revenue	$120,000	Repeat buyer revenue
Ad Spend	$25,000	Advertising cost
RC RAAD	$95,000	$120,000 − $25,000

How It Works

RC RAAD shows how much returning customer revenue remains after advertising costs. RC RAAD is typically higher than NC RAAD because repeat customers generate revenue without requiring new acquisition cost.

When to Use

Scenario	Action
Measuring retention value	RC RAAD shows repeat order impact after ads
Comparing segments	RC RAAD vs NC RAAD demonstrates retention value
LTV analysis	Use RC RAAD for lifetime value projections
Budget allocation	Higher RC RAAD suggests investing in retention

Metric	Relationship
NC RAAD	RAAD from new customers
RAAD (Total)	Overall revenue after ad spend
LTV	Customer lifetime value

See all Performance metrics →