ncROAS (new customer ROAS)

ncROAS is the revenue from first-time customers divided by ad spend. It leaves out repeat buyers, who would often have bought anyway.

Stock photos and example labels, not customers.

Definition

ncROAS is the revenue from first-time customers divided by ad spend. It leaves out repeat buyers, who would often have bought anyway.

FormulancROAS = revenue from new customers / ad spend

Example with made-up numbers: Of 3,200 in attributed revenue, 1,600 comes from first orders. With 1,000 in spend, ncROAS = 1,600 / 1,000 = 1.6.

How to use it

A store with many returning customers can show a healthy ROAS while acquiring few new buyers. ncROAS separates the two, so prospecting campaigns are judged on new customers.

It needs a clear rule for who counts as new, taken from the store and not from the ad platform. Write that rule next to the number.

Related terms

ROAS Blended CAC LTV

Go deeper

Measurement

How to calculate break-even ROAS for an ecommerce client

Break-even ROAS is the line between an ad that loses money and one that pays for itself. It takes three inputs and one division.

6 min read

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