Repeat purchase rate

Repeat purchase rate is the share of customers who bought more than once in a period. It decides how much a first order is really worth.

Stock photos and example labels, not customers.

Definition

Repeat purchase rate is the share of customers who bought more than once in a period. It decides how much a first order is really worth.

FormulaRepeat purchase rate = customers with 2 or more orders / all customers in the cohort

Example with made-up numbers: Of 1,000 customers acquired in a month, 220 order again within 90 days. Repeat rate = 220 / 1,000 = 22 percent.

How to use it

Stores with a high repeat rate can afford a higher acquisition cost, because the first order is not the whole story. Stores with a low one need the first order to pay for itself.

Fix the period and the cohort when you quote it, for example customers acquired in January, repeat within 90 days.

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