Repeat Purchase Rate

Discover how Repeat Purchase Rate helps businesses track the percentage of customers who return to buy again. Learn how to measure, analyze, and increase this KPI to drive loyalty and long-term revenue.

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KPI Details for Repeat Purchase Rate

Category	Marketing, Ecommerce
Type	Lagging Indicator
Calculation	Repeat Purchase Rate (%) = ( Returning Customers / Total Customers ) × 100
Measure	Tracks the percentage of customers who make at least one additional purchase, helping businesses understand retention trends and customer satisfaction.
Data Sources:	Shopify, WooCommerce, BigCommerce, Klaviyo, Google Analytics, Stripe, ReCharge.
Frequency	Tracked monthly or quarterly to monitor loyalty trends and evaluate retention initiatives.

Example target

Increase repeat purchase rate to 40% in Q3 by implementing a loyalty program, sending replenishment reminders, and personalizing email campaigns.

Example Reports Use Case

A Customer Retention Manager monitors Repeat Purchase Rate to evaluate post-purchase experience and loyalty efforts. If the rate is low, they may improve product recommendations, offer discounts for reorders, or enhance the post-sale journey.

KPI Example

Best Practices for Repeat Purchase Rate

Launch Loyalty & Reward Programs

Incentivize repeat purchases with points, discounts, or exclusive offers.
Send Timely Follow-Up Emails

Use email automation to remind customers to restock or explore related products.
Improve Post-Purchase Experience

Ensure fast shipping, quality packaging, and proactive support to increase customer satisfaction.
Personalize Product Recommendations

Use browsing and purchase history to suggest relevant items for repurchase.

What is Repeat Purchase Rate

Repeat Purchase Rate is a key performance indicator (KPI) that measures the proportion of customers who make more than one purchase within a specific time period. Expressed as a percentage, it is calculated by dividing the number of repeat purchasers by the total number of customers. This metric is especially important for e-commerce businesses as it reflects customer satisfaction, loyalty, and the perceived value of the products or services offered. A higher repeat purchase rate often signals a strong customer experience and successful retention efforts.

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