E-commerce

Repeat Cust / Total Cust

Repeat Cust / Total Cust

How to Calculate Repeat Purchase Rate

How to Calculate Repeat Purchase Rate

Percentage of customers with more than one purchase.

Percentage of customers with more than one purchase.

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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.

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