Repeat Purchase Rate

What is Repeat Purchase Rate?

Repeat purchase rate measures the percentage of customers who come back to buy again. It's a critical indicator of customer satisfaction and product-market fit in ecommerce and consumer businesses.

High repeat rates mean customers love your product enough to return. Low repeat rates suggest the first purchase didn't meet expectations, or you're not giving them reasons to come back.

Why Repeat Purchase Rate Matters

Repeat customers are more profitable. They cost less to acquire (they're already customers), spend more per order, and refer others. Building a base of repeat customers creates sustainable growth.

Repeat rate also validates your product and experience. If customers don't return, something is wrong with the product, price, or post-purchase experience.

Improving Repeat Purchase Rate

Email marketing and remarketing to past buyers. Subscription or auto-replenishment options. Loyalty programs and rewards. Excellent post-purchase experience. Product quality that exceeds expectations.

Cohort analysis:

• Customers who purchased in Q1: 1,000
• Of those, purchased again within 12 months: 350

Repeat Purchase Rate = 350 ÷ 1,000 = 35%

35% of first-time buyers become repeat customers. Focus on understanding what drives that 35% to convert more of the 65%.