4.6.6 - Simple Cohort & Retention Views (Difficulty: Advanced | Path: Scale)

How to Analyze New vs. Repeat Customer Revenue (Beginner)

What is it?

This is one of the most important and simple reports in your Shopify admin. It's a report (found under `Analytics` > `Reports` > `Sales`) that splits your total revenue into two buckets: sales from first-time customers and sales from returning (repeat) customers.

Why is it important?

It's your business's 'health check'. A healthy business doesn't just live on new customers; it builds a loyal following. If 100% of your sales are from new customers every month, it means nobody is coming back. This is a 'leaky bucket'—you're spending a fortune on ads to acquire customers who never buy again. A rising percentage of 'repeat' revenue means your products, brand, and customer service are working.

How to Check It:

1. In your Shopify admin, go to `Analytics` > `Reports`.
2. Find and click on the 'Sales' report.
3. Look for a report called 'Sales by customer type' or 'New vs. returning customers'.
4. Set your date range (e.g., 'Last 30 days') and look at the percentage.

✅ Do's and ❌ Don'ts

• Do: Check this metric at the end of every month. Your goal is to see the 'Repeat Customer' percentage slowly climb.
• Do: Use this to justify your email marketing. Email is the #1 tool for turning new buyers into repeat buyers.
• Don't: Panic if it's 0% in your first month. That's normal. Start worrying if it's still near 0% after 6 months.

Common Misconception

'I just need more traffic to make more money.' This report proves that's false. You might just need *better retention*. It's almost always cheaper to get a past customer to buy again (via an email) than to pay for a brand new customer (via an ad).