The total product-level profit from new customer orders, calculated as gross revenue minus cost of goods sold (COGS).
| Metric | Definition |
|---|
| New Customer Gross Revenue | Total revenue from first-time buyer orders before deductions |
| New Customer COGS | Cost of goods sold for products purchased by new customers |
| Metadata | |
|---|
| Type | Currency |
| Data Source | Shopify |
| Aggregation | Sum |
Example
Your store acquired 847 new customers in March with $42,350 in product margin:
| Segment | Revenue | COGS | Product Margin |
|---|
| New Customers | $127,050 | $84,700 | $42,350 |
| Returning Customers | $198,200 | $118,920 | $79,280 |
How It Works
New Customer Product Margin isolates profitability from first-time buyers by subtracting New Customer COGS from New Customer Gross Revenue. This excludes returning customer orders, showing only the product-level profit generated by customer acquisition.
When to Use
| Scenario | Action |
|---|
| Evaluating acquisition ROI | Compare product margin against customer acquisition cost |
| Setting CPA targets | Use as the ceiling for profitable acquisition spend |
| Analyzing new vs returning mix | Compare profitability between customer segments |
| Product selection for acquisition | Identify which products drive profitable new customer orders |
| Metric | Relationship |
|---|
| Product Margin | Total product margin across all customers |
| Returning Customer Product Margin | Same calculation for repeat buyers |
| New Customer Gross Revenue | Revenue component before subtracting COGS |
| New Customer COGS | Cost component subtracted from revenue |
