Returning Customer RAAD %: Repeat Order Revenue Retention Rate

Returning Customer RAAD % measures what share of repeat order revenue remains after subtracting ad spend—showing retention profitability as a margin.

Formula

Returning Customer RAAD % = ( Returning Customer Total Revenue − Ad Spend ) ÷ Returning Customer Total Revenue × 100

Formula Components

Metric	Definition
Returning Customer Total Revenue	Revenue from repeat buyer orders
Ad Spend	Total advertising spend

Metadata
Type	Percentage
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
RAAD Amount	$85,000	$100,000 − $15,000
Returning Customer RAAD %	85%	$85,000 ÷ $100,000

How It Works

Returning Customer RAAD % shows how profitable your repeat customer revenue is relative to ad spend. Repeat customers typically have higher RAAD % because no acquisition cost is needed—they’re already customers.

Benchmarks

Rating	Range
Excellent	> 85%
Good	70% – 85%
Moderate	50% – 70%
Needs Review	< 50%

Returning customer RAAD % should be significantly higher than new customer RAAD % since no acquisition cost is incurred.

Metric	Relationship
Returning Customer RAAD	Absolute amount
RAAD %	Overall revenue retention rate
New Customer RAAD %	First-order retention rate

See all Performance metrics →

​Formula

​Formula Components

​Example

​How It Works

​Benchmarks

​Related Metrics

Formula

Formula Components

Example

How It Works

Benchmarks

Related Metrics