What is
Repeat Purchase Rate
?
Repeat Purchase Rate is the percentage of a company’s customers who have made more than one purchase over a given period. It is the most important metric for evaluating 'Customer Loyalty' and the long-term health of an e-commerce brand. Because it is 5 to 25 times more expensive to acquire a new customer than to retain an existing one, a high repeat rate is the key to achieving high profitability. The rate is calculated by dividing the number of repeat customers by the total number of unique customers. A brand with a 30%+ repeat purchase rate is building a 'community' of loyalists, which serves as a powerful organic moat against competitors. Improving the repeat rate involves post-purchase engagement: loyalty programs, personalized email marketing, and ensuring a high-quality unboxing experience. For investors, a high repeat purchase rate is proof that the product delivers real value and that the brand has 'Staying Power' in a crowded market.
Frequently asked questions.
Why is this the most important e-com metric?
Returning customers are 5x cheaper to convert than new ones; it is the key to profitability.
What is a good repeat purchase rate?
20-30% is strong for most niches; 50%+ is 'cult-brand' level.
How to improve repeat rates?
Launch a loyalty program and use email segmentation to send personalized offers.
Link to LTV?
The repeat rate is the primary driver of customer lifetime value in e-commerce.
Difference between Retention and Repeat Rate?
Repeat rate counts transactions; Retention counts how many individual customers stay active.

