Repeat Purchase Rate Calculator

How to use this repeat purchase rate calculator

To calculate the repeat purchase rate, enter the total number of your customers and the number of repeat customers (customers who made more than one purchase) over a specific period. The tool will instantly calculate your repeat purchase rate.

Repeat purchase rate formula

Repeat Purchase Rate (%) = (Number of Repeat Customers /Total Number of Customers) × 100

Understanding the repeat purchase rate result

The ideal rate can vary significantly depending on the industry, product type, and business model:

• A high repeat purchase rate means a significant percentage of your customers are returning to make additional purchases, which suggests strong customer loyalty and satisfaction.
• A low repeat purchase rate indicates that fewer customers are making repeat purchases. This could point to potential issues with the quality of your products or customer service.

When to calculate repeat purchase rate

Calculating repeat purchase rate is essential for understanding customer behavior and improving retention strategies. Key scenarios for calculating this rate include:

• During monthly, quarterly, or annual performance reviews to track customer loyalty trends over time
• After implementing new marketing or retention strategies to assess their effectiveness
• While comparing performance against industry benchmarks or competitors to evaluate your market position
• When developing customer segmentation strategies to target high-value, repeat customers more effectively
• While preparing reports for stakeholders or investors to demonstrate customer loyalty and business growth potential

How to calculate Repeat purchase rate with example

Let’s say that you had 2,000 customers last quarter, and 600 of them made more than one purchase. To calculate your repeat purchase rate:

Repeat Purchase Rate (%) = (Number of Repeat Customers /Total Number of Customers) × 100

Repeat Purchase Rate = (600/2,000) × 100 = 30%

In this example, your repeat purchase rate is 30%, indicating that 30% of your customers are returning to make additional purchases.

How to improve your repeat purchase rate

To improve your repeat purchase rate, consider the following strategies:

• Create a loyalty program that rewards customers for repeat purchases.
• Send personalized follow-up emails with product recommendations.
• Offer discounts, special offers, or exclusive deals for returning customers.
• Provide excellent customer service to enhance the overall buying experience.
• Utilize retargeting ads to re-engage past customers.
• Collect and act on customer feedback to improve products or services.
• Build a community around your brand to foster customer loyalty.