> ## 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 CM1 %: First-Order Gross Margin Rate

> Track New Customer CM1 percentage for your Shopify store. Measure gross margin rate from first-time buyers.

<Tip>
  NC CM1 % measures the gross margin percentage from new customer orders—the percentage of first-order revenue remaining after COGS.
</Tip>

## Formula

<Info>
  **NC CM1 %** = ( **NC CM1** ÷ **NC Net Revenue** ) × 100
</Info>

### Formula Components

| Metric                                                                           | Definition                            |
| -------------------------------------------------------------------------------- | ------------------------------------- |
| [**NC CM1**](/reference/metrics/orders/contribution-margin/new-customer-cm1)     | Gross margin from new customer orders |
| [**NC Net Revenue**](/reference/metrics/orders/revenue/new-customer-net-revenue) | Net revenue from new customers        |

| Metadata        |                                                                      |
| --------------- | -------------------------------------------------------------------- |
| **Type**        | Percentage                                                           |
| **Data Source** | [Shopify](/sources/shopify), [Upstack Costs](/sources/upstack-costs) |
| **Aggregation** | Ratio                                                                |

***

## Example

New customers generated **\$32,000** CM1 from **\$50,000** net revenue.

| Component      | Value    | Calculation               |
| -------------- | -------- | ------------------------- |
| NC CM1         | \$32,000 | Gross margin              |
| NC Net Revenue | \$50,000 | Revenue base              |
| **NC CM1 %**   | **64%**  | \$32,000 ÷ \$50,000 × 100 |

***

## How It Works

NC CM1 % normalizes new customer gross margin as a percentage, making it easy to compare profitability rates across customer segments regardless of volume. Compare against RC CM1 % to see if new or returning customers generate higher margins.

***

## When to Use

| Scenario                        | Action                                        |
| ------------------------------- | --------------------------------------------- |
| Comparing customer segments     | Check if NC CM1 % differs from RC CM1 %       |
| Tracking acquisition efficiency | Monitor margin rate trends for new customers  |
| Evaluating promotions           | See how discounts impact new customer margins |
| Setting pricing strategy        | Ensure NC margins support acquisition costs   |

***

## Related Metrics

| Metric                                                                                   | Relationship                              |
| ---------------------------------------------------------------------------------------- | ----------------------------------------- |
| [NC CM1](/reference/metrics/orders/contribution-margin/new-customer-cm1)                 | Dollar amount that NC CM1 % is based on   |
| [RC CM1 %](/reference/metrics/orders/contribution-margin/returning-customer-cm1-percent) | Gross margin rate for returning customers |
| [CM1 %](/reference/metrics/orders/contribution-margin/cm1-percent)                       | Overall gross margin rate                 |

[See all Contribution Margin metrics →](/reference/metrics/orders/contribution-margin)