Returning Customer CM1: Repeat Order Gross Margin

Track Returning Customer CM1 for your Shopify store. Measure gross margin from repeat buyers.

Returning Customer CM1 measures the gross margin from repeat buyers—net revenue minus COGS for returning customer orders only.

Formula

RC CM1 = RC Net Revenue − RC Total COGS

Formula Components

Metric	Definition
RC Net Revenue	Net revenue from returning customer orders
RC Total COGS	Cost of goods sold for returning customer orders
customer_type = returning_customer	Filters to repeat buyers

Metadata
Type	Currency
Data Source	Shopify, Upstack Costs
Aggregation	Sum

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Example

Returning customers generated $75,000 net revenue with $27,000 in COGS.

Component	Amount	Calculation
RC Net Revenue	$75,000	Repeat buyer revenue
RC COGS	$27,000	Product costs
RC CM1	$48,000	$75,000 − $27,000

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How It Works

RC CM1 isolates the gross margin from returning customers—orders placed by customers who have purchased before. This margin comes without additional acquisition cost, making it a key indicator of retention profitability.

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When to Use

Scenario	Action
Measuring retention value	Track RC CM1 as zero-acquisition profit
Comparing customer segments	Benchmark RC CM1 against NC CM1
Evaluating loyalty programs	Measure margin impact of retention initiatives
LTV planning	Use RC CM1 to project lifetime value

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Related Metrics

Metric	Relationship
RC CM1 %	RC CM1 as a percentage of RC net revenue
NC CM1	Gross margin from new customers
Returning Customers	Count of repeat buyers

See all Contribution Margin metrics →