> ## Documentation Index
> Fetch the complete documentation index at: https://docs.upstackdata.com/llms.txt
> Use this file to discover all available pages before exploring further.

# New Customer Discount Gross Rate: Discounts as % of Gross Revenue

> Measure new customer discount dollars as a percentage of gross revenue. Track acquisition discount impact on first-purchase margins with Shopify order data.

<Tip>
  New customer discount amount as a percentage of new customer gross revenue.
</Tip>

## Formula

<Info>
  **NC Discount Gross Rate** = ( [**New Customer Discounts**](/reference/metrics/orders/adjustments/new-customer-discounts) ÷ [**New Customer Gross Revenue**](/reference/metrics/orders/revenue/new-customer-gross-revenue) ) × 100
</Info>

### Formula Components

| Metric                                                                                         | Definition                                                         |
| ---------------------------------------------------------------------------------------------- | ------------------------------------------------------------------ |
| [**New Customer Discounts**](/reference/metrics/orders/adjustments/new-customer-discounts)     | Total dollar value of discounts applied to first-time buyer orders |
| [**New Customer Gross Revenue**](/reference/metrics/orders/revenue/new-customer-gross-revenue) | Total revenue from new customers before adjustments                |

| Metadata        |                             |
| --------------- | --------------------------- |
| **Type**        | Percentage                  |
| **Data Source** | [Shopify](/sources/shopify) |
| **Aggregation** | Ratio                       |

***

## Example

Your new customers generated **\$92,000** in gross revenue with **\$8,280** in discounts:

| Metric                     | Value    |
| -------------------------- | -------- |
| New Customer Gross Revenue | \$92,000 |
| New Customer Discounts     | \$8,280  |
| **NC Discount Gross Rate** | **9.0%** |

***

## How It Works

This metric divides new customer discount dollars by new customer gross revenue, then multiplies by 100. It measures how much of first-time buyer revenue is offset by promotional discounts. Higher rates indicate aggressive acquisition discounting that may reduce margins on initial purchases.

***

## When to Use

| Scenario                     | Action                                                                      |
| ---------------------------- | --------------------------------------------------------------------------- |
| Evaluating acquisition costs | Combine with CAC to understand true cost of new customer orders             |
| Margin analysis              | Monitor discount erosion on first-purchase profitability                    |
| New vs. returning comparison | Benchmark against RC Discount Gross Rate for retention efficiency           |
| Promotion optimization       | Identify if acquisition discounts can be reduced without hurting conversion |

***

## Related Metrics

| Metric                                                                                                 | Relationship                                     |
| ------------------------------------------------------------------------------------------------------ | ------------------------------------------------ |
| [NC Discount %](/reference/metrics/orders/adjustments/new-customer-discount-percent)                   | Related percentage metric for new customers      |
| [NC Discount Per Order](/reference/metrics/orders/adjustments/new-customer-discount-per-order)         | Average discount per new customer order          |
| [RC Discount Gross Rate](/reference/metrics/orders/adjustments/returning-customer-discount-gross-rate) | Compare acquisition vs. retention discount rates |
| [Discount Amount](/reference/metrics/orders/adjustments/discount-amount)                               | Total discounts across all customers             |

[See all Adjustments metrics →](/reference/metrics/orders/adjustments)