New Customer CM2 ROAS: First-Order Variable Margin ROAS

Track new customer CM2 ROAS for your Shopify store. Measure variable margin generated per dollar of ad spend on first orders.

New Customer CM2 ROAS measures how much variable margin (after COGS and fulfillment) you generate from first orders per dollar of ad spend.

Formula

New Customer CM2 ROAS = New Customer CM2 ÷ Ad Spend

Formula Components

Metric	Definition
New Customer CM2	Variable margin from first-time buyer orders
Ad Spend	Total advertising spend

Metadata
Type	Ratio
Data Source	Shopify, Advertising Platforms
Aggregation	Ratio

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Example

Your Shopify store generates $22,000 CM2 from new customers and spends $15,000 on ads.

Component	Value	Calculation
New Customer CM2	$22,000	First-order variable margin
Ad Spend	$15,000	Marketing cost
New Customer CM2 ROAS	1.47	$22,000 ÷ $15,000

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How It Works

New Customer CM2 ROAS shows margin-adjusted acquisition efficiency. Unlike revenue-based ROAS, this accounts for product costs and fulfillment—giving a more realistic picture of acquisition economics.

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Benchmarks

Rating	Range
Excellent	> 2.0
Good	1.2 – 2.0
Break-even	1.0
Unprofitable	< 1.0

A CM2 ROAS below 1.0 means fulfillment-adjusted margin doesn’t cover ad spend.

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Related Metrics

Metric	Relationship
New Customer CM2	Numerator (variable margin)
CM2 ROAS	Overall CM2 ROAS
Returning Customer CM2 ROAS	Repeat order CM2 ROAS

See all Performance metrics →