The total product margin generated by returning customer orders, calculated as gross revenue minus cost of goods sold.
| Metric | Definition |
|---|
| Returning Customer Gross Revenue | Gross revenue from repeat buyers before discounts and refunds |
| Returning Customer COGS | Cost of goods sold for returning customer orders |
| Metadata | |
|---|
| Type | Currency |
| Data Source | Shopify |
| Aggregation | Sum |
Example
Your returning customers generated $28,400 in product margin last month:
| Segment | Gross Revenue | COGS | Product Margin |
|---|
| Returning Customers | $85,200 | $56,800 | $28,400 |
| New Customers | $42,100 | $29,470 | $12,630 |
How It Works
Returning Customer Product Margin captures the gross profit from repeat buyers at the product level. It subtracts Returning Customer COGS from Returning Customer Gross Revenue, showing how much you keep after product costs. This metric excludes fulfillment, transaction fees, and marketing costs.
When to Use
| Scenario | Action |
|---|
| Measuring retention value | Compare RC margin to NC margin to see if repeat buyers are more profitable |
| Evaluating loyalty economics | High RC margin indicates sustainable retention without heavy discounting |
| Setting retention goals | Use as a target for retention campaigns and loyalty programs |
| Analyzing customer mix impact | Track how shifts in NC/RC ratio affect overall profitability |
| Metric | Relationship |
|---|
| New Customer Product Margin | Same calculation for first-time buyers |
| Product Margin | Total product margin across all customers |
| Returning Customer Gross Revenue | Revenue component of this calculation |
| Returning Customer COGS | Cost component subtracted from revenue |
