Repeat Purchase Rate Definition

How Can You Calculate Repeat Purchase Rate?

The repeat purchase rate is a metric that measures the number of customers who buy a product more than once. It is usually expressed as a percentage of the total number of customers who have purchased the product.

The repeat purchase rate is calculated by taking the total number of repeat purchases and dividing it by the total number of customers who made a purchase in that timeframe.

repeat purchase rate calculation with an illustraion of percentages and a man pointing at them

Using this formula, you can easily calculate your business’ repeat purchase rate.

For example, if you had 100 customers who made purchases over four months, and 50 of them returned to make another purchase within those four months, your repeat purchase rate would be 50% for this given time.

You might consider calculating the repeat purchase rate during specific times of the year. In that way, you can see whether your marketing efforts are working or not.

Why You Should Track Your Repeat Purchase Rate

But why should you track your company’s repeat purchase rate? It’s important to keep track of this metric because it shows how many consistent customers you have, which indicates how loyal your customer base is.

It may differ according to your company’s niche and different target audiences it appeals to. Also, it goes hand in hand with your customer retention rate.

If you have a high repeat purchase rate, you are doing something right. It shows that you have loyal customers who buy your products or services more than once.

Analyzing who purchases your products and services more than once can be helpful to reduce the card abandonment of your business.

Calculating it after your marketing campaigns can be practical to measure their performances and see whether they worked out or not.