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- Repeat Purchase Rate
Repeat Purchase Rate
The percentage of customers who make more than one purchase.
The percentage of customers who make more than one purchase.
Why It Matters
Repeat purchase rate is the ultimate indicator of product-market fit and customer satisfaction. If people aren't coming back, either your product isn't delivering or your retention marketing is failing. High repeat rates dramatically improve LTV and reduce dependence on expensive new customer acquisition.
Benchmarks
Good Performance
25-30%
Top Performers
40%+
Practical Example
Scenario
A skincare brand acquired 10,000 new customers in Q1. By end of Q2, 3,200 had made a second purchase.
Calculation
Repeat Purchase Rate = 3,200 / 10,000 = 32%Result
At 32%, they're slightly above the 25-30% benchmark. With focused post-purchase email flows and loyalty programs, they target 40%—which would add significant LTV and profitability.
Pro Tips
- 1Measure repeat rate by cohort and time period. '6-month repeat rate' is more actionable than 'all-time repeat rate'.
- 2Segment by first product purchased. Some entry products have 50% repeat rate while others have 15%—this informs product strategy.
- 3Time your post-purchase marketing based on typical replenishment cycles. Coffee beans might be 3 weeks; skincare might be 2 months.
- 4Survey non-repeaters to understand why. Price? Didn't like the product? Forgot about you? Each requires different intervention.