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What is Repeat Customer Rate?

Repeat Customer Rate refers to the percentage of repeat customers within a specific timeframe. A repeat customer is someone who has purchased more than once from your store, there is typically no time-limit to a customer being defined as a repeat customer.

 

Repeat Customer Rate formula.

Repeat Customer Rate = [No. customers who've purchased more than once / Total no. customers] × 100

 

A low % of repeat customers need not be a negative thing. The number of new customers can also be a good indicator of the effectiveness of your marketing efforts. If there’s a significant increase in the number of new users after you’ve launched a new campaign, then you know that your campaign is doing pretty good in terms of reaching out to more people.

Once you have the number of new users, you can further track the sources and channels to understand where these customers are coming from. This could help you come up with even better strategies for your business growth.

 

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What are the industry benchmarks for Repeat Customer Rate?

Benchmarks vary widely based on industry, product-category, and location, but a 20-30% repeat rate is considered healthy.

 

How can you improve Repeat Customer Rate for your store?

You can increase your repeat usage by paying special attention to your existing customers—for instance, provide them with special discount codes, give them priority access to sales before opening up to the public, or creating a special wallet for them to get special offers.



 

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