> ## 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 %: Discount Share of Gross Revenue

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

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

## Formula

<Info>
  **NC Discount %** = ( [**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 new customer 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 **\$85,000** in gross revenue with **\$10,200** in discounts:

| Metric                      | Value     |
| --------------------------- | --------- |
| New Customer Gross Revenue  | \$85,000  |
| New Customer Discounts      | \$10,200  |
| **New Customer Discount %** | **12.0%** |

***

## How It Works

This metric divides new customer discounts by new customer gross revenue, then multiplies by 100. Higher percentages indicate heavier discount reliance for acquisition, which may signal necessary promotional investment or aggressive discounting that erodes first-purchase margins.

***

## When to Use

| Scenario                     | Action                                                       |
| ---------------------------- | ------------------------------------------------------------ |
| Evaluating acquisition costs | Compare discount rates to CAC for true acquisition cost      |
| Promotion effectiveness      | Monitor if first-purchase discounts drive sustainable growth |
| New vs. returning comparison | Benchmark against returning customer discount rates          |
| Margin optimization          | Identify opportunities to reduce acquisition discounts       |

***

## Related Metrics

| Metric                                                                                         | Relationship                                     |
| ---------------------------------------------------------------------------------------------- | ------------------------------------------------ |
| [New Customer Discounts](/reference/metrics/orders/adjustments/new-customer-discounts)         | The numerator — total discount dollars           |
| [NC Discount Per Order](/reference/metrics/orders/adjustments/new-customer-discount-per-order) | Average discount per new customer order          |
| [RC Discount %](/reference/metrics/orders/adjustments/returning-customer-discount-percent)     | Compare acquisition vs. retention discount rates |

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