Repeat customer rate

The repeat customer rate is a key performance indicator used in eCommerce that quantifies the percentage of customers who have made two or more purchases within a specified period.

This metric assesses the overall quality of the customer experience provided by an online store and gauges the level of value customers perceive in the business. A repeat customer is someone who has made two or more purchases on the website, and there is typically no strict time limit in determining repeat customers. Whether they made their initial purchase a year ago or just last week, if they have made two or more purchases, they qualify as repeat customers.

To calculate the Repeat Customer Rate, businesses can analyze various times, such as the proportion of customers who made repeat purchases within the same week, month, or quarter in which they have previously made a purchase.

It is calculated using a straightforward formula: Repeat Customer Rate (%) = (Number of customers who have purchased before / Total number of customers) × 100