Repeat Purchase Rate
Definition
The percentage of customers who buy more than once in a given period.
Want a deeper explanation?
Formula
Repeat Purchase Rate % = Customers with 2+ Orders ÷ Total Customers × 100Repeat customers cost far less to sell to than new ones, so this rate has a big effect on profitability.
It depends heavily on the product: consumables should have a much higher rate than furniture. Watch for: revenue growth driven only by new customers, which makes you more exposed to rising ad costs.
Example
Of 10,000 customers last year, 2,600 ordered again, a 26% repeat purchase rate.