This metric allows you to understand how many customers are returning to make another purchase. It’s an excellent way to gauge customer loyalty.
Calculating the repeat purchase rate isn’t as daunting as it might seem. All you need is an understanding of your total customers and repeat customers. The formula for determining your repeat purchase rate is relatively simple. It involves dividing the number of customers who have made more than one purchase by the total number of customers, then multiplying the result by 100 to get a percentage.
Repeat Purchase Rate (%) = (Number of Repeat Customers / Total Number of Customers) * 100
Once you’ve calculated your repeat purchase rate, it’s time to interpret the data. A higher percentage indicates a strong level of customer loyalty, while a lower percentage may suggest an area for improvement.
Improving this metric can be achieved in several ways, such as offering loyalty programs, establishing strong customer service, and ensuring product quality.
Repeat Purchase Rate Calculator
The values you enter into this calculator are not saved or stored in any way.
