> For the complete documentation index, see [llms.txt](https://help.littledata.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://help.littledata.io/integrations/google-ads/new-and-returning-customer-purchase-in-google-ads.md).

# New and Returning Customer Purchase Event in Google Ads

As marketers, we know that understanding the difference between new and returning customers in your Google Ads campaigns is essential for budget allocation and maximizing ad spend efficiency. Your goal is to maximize new customer influx at projected cost per acquisition (CAC) while maintaining a balanced budget for retention campaigns.

### Why track new and returning customers separately

New customers grow your business, but they usually cost more to win than repeat buyers. Returning customers are often cheaper to reach through owned channels like email and organic social. In some cases, such as winning back lapsed customers, [Google Ads retargeting](https://help.littledata.io/integrations/google-ads/build-winback-campaigns-in-googleads) can still make sense.

When all purchases count as one conversion, Google Ads optimizes for every buyer, new and returning. With separate conversion actions, you can point acquisition campaigns at new customers only and keep a clear view of your cost per acquisition.

### The Littledata conversion actions

When you connect Google Ads, Littledata creates three conversion actions in your Google Ads account:

| Conversion action                        | When it's sent                                               |
| ---------------------------------------- | ------------------------------------------------------------ |
| Purchase - Littledata                    | Every order                                                  |
| New Customer Purchase - Littledata       | A customer with no purchase history places an order          |
| Returning Customer Purchase - Littledata | A customer with an existing purchase history places an order |

Each order is sent as **Purchase - Littledata** plus either the new or the returning customer action. Littledata treats an order as returning when the customer has more than one order in Shopify, or when it's a recurring subscription order.

Littledata sends these conversions from Shopify's servers, so they aren't lost to ad blockers or browser privacy limits. Each conversion includes the Google click ID when there is one, and a hashed email address (or a hashed phone number if there's no email) for enhanced conversions.

### Littledata compared with other methods

|                      | Littledata | Audience list import | Google Analytics audience import | Google Ads "Optimize for new customers" |
| -------------------- | ---------- | -------------------- | -------------------------------- | --------------------------------------- |
| Browser identifiers  | Yes        | No                   | Yes                              | No                                      |
| Hashed customer data | Yes        | Yes                  | No                               | No                                      |
| Scalable audience    | Yes        | No                   | Yes                              | Yes                                     |

### Google's native new customer parameter

Google Ads has its own way to flag new customers. You add a `new_customer` parameter (`true` or `false`) to the purchase event in your Google tag. To do that, your site must look up each buyer's purchase history at checkout, usually with custom code. By default, Google uses a 540-day window to decide whether a customer is returning.

With this set up, Google Ads shows a **New customers** column in your reports. The Littledata **New Customer Purchase - Littledata** count is usually higher, because it's sent server-side and doesn't depend on the browser tag firing.

### Set up a new customer campaign goal

{% stepper %}
{% step %}

### Connect Google Ads in Littledata

Follow the [Shopify to Google Ads installation guide](https://help.littledata.io/integrations/google-ads/google-ads-install-guide). On the **Set up your tracking** step, choose **Use best practices** to create all conversion actions. If you choose **Customize your tracking** instead, keep **New Customer Purchase - Littledata** and **Returning Customer Purchase - Littledata** selected under **Conversion actions**.

Once Google Ads is connected, you can see these conversion actions in the destination's **Event Editor** tab.

<figure><img src="https://3956158252-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F1QhTbrMraNWciQeDvu1b%2Fuploads%2FBn3IoNXYlKetn67WYsD7%2Fimage.png?alt=media&amp;token=8c23ce3f-d822-49ac-bfe2-e9fe26d56a00" alt=""><figcaption></figcaption></figure>
{% endstep %}

{% step %}

### Wait for conversions

Give Littledata time to send some orders. The new conversion actions need data before you use them in campaigns.
{% endstep %}

{% step %}

### Add a custom goal

In Google Ads, go to **Goals** > **Conversions** > **Summary**. Scroll to the bottom of the page and click **Add custom goal** in the **Custom goals** section.
{% endstep %}

{% step %}

### Select the new customer action

Name the goal (for example, "New purchaser"). Under **Select conversion actions**, tick **New Customer Purchase - Littledata**, then click **Save**.

<figure><img src="https://3956158252-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F1QhTbrMraNWciQeDvu1b%2Fuploads%2FPUAGQFLpdjKIDloVvmRN%2F2.png?alt=media&amp;token=6fae472d-eef5-49b7-b97a-179bd1264de9" alt=""><figcaption></figcaption></figure>

You can create a second custom goal for **Returning Customer Purchase - Littledata** the same way.
{% endstep %}

{% step %}

### Assign the goal to a campaign

Open the campaign's settings. Under **Conversion goals**, choose **Campaign-specific**, select your new customer goal, and click **Save**.

<figure><img src="https://3956158252-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F1QhTbrMraNWciQeDvu1b%2Fuploads%2Fn4I2gvulpECj08xvUmyc%2F1.png?alt=media&amp;token=9762e17e-8f38-4af2-b259-2f7d109044e8" alt=""><figcaption></figcaption></figure>
{% endstep %}
{% endstepper %}

{% hint style="info" %}
After you change a campaign's goals, Google Ads may show performance swings for 1 to 2 weeks while the bid strategy adjusts.
{% endhint %}

### Setting your acquisition cost target

Optimizing for new customers only will raise your cost per sale. That's expected. The aim is to win customers who bring long-term revenue, not just the cheapest sale.

To set a customer acquisition cost (CAC) target, look at:

* Customer [lifetime value](https://help.littledata.io/google-analytics/conversions/lifetime-value-in-ga4)
* How long customers stay, especially if you sell subscriptions
* The average number of purchases per customer

### Related articles

* [How it works: Shopify to Google Ads](https://help.littledata.io/integrations/google-ads/google-ads-how-it-works)
* [Shopify to Google Ads installation guide](https://help.littledata.io/integrations/google-ads/google-ads-install-guide)
* [Building winback campaigns in Google Ads](https://help.littledata.io/integrations/google-ads/build-winback-campaigns-in-googleads)
* [Optimize Google Ads acquisition campaigns around 1st time buyers](https://help.littledata.io/google-analytics/acquisition/optimize-google-ads-acquisition-campaigns-around-1st-time-buyers)