The percentage of first-time buyer revenue remaining as gross profit after subtracting product costs.
| Metric | Definition |
|---|
| New Customer Gross Revenue | Total product revenue from first-time buyers before discounts and refunds |
| New Customer COGS | Cost of goods sold for first-time buyer orders |
| Metadata | |
|---|
| Type | Percentage |
| Data Source | Shopify |
| Aggregation | Ratio |
Example
A supplement brand analyzes first-time buyer margins across quarters:
| Quarter | NC Gross Revenue | NC COGS | NC Product Margin % |
|---|
| Q1 | $42,000 | $14,700 | 65.0% |
| Q2 | $56,500 | $18,645 | 67.0% |
| Q3 | $61,200 | $19,584 | 68.0% |
How It Works
This metric calculates the percentage of gross revenue retained after product costs for new customer orders only. It divides the difference between New Customer Gross Revenue and New Customer COGS by gross revenue, then multiplies by 100. Higher percentages mean more margin retained per dollar of new customer revenue.
When to Use
| Scenario | Action |
|---|
| Evaluating acquisition offers | Check if new customer promotions erode product margins |
| Comparing customer segments | Compare to returning customer margin to identify differences |
| Product mix analysis | Identify if first-time buyers gravitate toward higher-margin products |
| Setting pricing strategy | Ensure prices support target margins for customer acquisition |
| Metric | Relationship |
|---|
| New Customer COGS | Product costs subtracted from revenue |
| New Customer Gross Revenue | The revenue base for this calculation |
| New Customer COGS Gross Rate | The inverse—shows costs as % of revenue |
| New Customer Product Margin | Dollar amount instead of percentage |
