The repeat purchase rate is a key indicator for any e-merchant who wants to build a solid loyalty strategy. It reveals a simple reality: do your customers really come back to buy from you?
It is a direct indicator of the quality of your customer experience. And a good repeat purchase rate can be managed.
Let's see how to calculate it, differentiate it from other KPIs... and above all, how to use it to boost your e-commerce performance.
The repeat purchase rate measures the percentage of your customers who have made at least two purchases in a given period.
In other words, it tells you how many of your buyers returned after placing their first order. It's proof of trust.
It couldn't be easier:
Repeat purchase rate = (Number of customers who have made at least two purchases ÷ Total number of customers) x 100
For example, if 2,000 customers ordered from your site in 2024, and 500 of them placed at least one repeat order, your repeat purchase rate is 25%.
This is a simple and valuable indicator for trying to identify what is working in your loyalty strategy... or what is not.
Be careful not to confuse the repeat purchase rate with two other very similar indicators: the retention rate and purchase frequency.
The retention rate measures the percentage of customers you retain over a given period.
This refers to customers who are still active, even if they have not yet made another purchase.
It's a subtle difference!
👉Learn more about the uses of the retention rate in this article.
Purchase frequency, on the other hand, looks at repeat purchases: how many times, on average, a customer returns within a year.
It gives an idea of the pace, whereas the repeat purchase rate gives an idea of the volume of loyal customers.
In short, these are three complementary indicators.
But if you're looking to find out how many customers you're able to convert into loyal customers, the repeat purchase rate is the one to choose.
In an e-commerce strategy, this KPI allows you to measure the real effectiveness of your loyalty initiatives.
Have you set up a loyalty or referral program? Great.
But does it keep your customers coming back? The repeat purchase rate gives you the answer.
It's also an excellent gauge of customer satisfaction.
A customer who makes a repeat purchase is a customer who has found real value in your product, service, or experience.
It's simple, but powerful.
And that's not all.
Working on this rate helps you better segment your audiences.
Identify your best customers, offer them personalized deals, and turn them into ambassadors with solutions like Loyoly.
This is where the approach becomes strategic.
Don't make these mistakes or your repeat purchase rate will suffer!
No, don't panic, but do avoid these 3 mistakes.
Not all brands have the same purchasing rhythm.
A customer may repurchase shower gel every 30 days but wait three years for a sofa.
If the analysis period is too short or too long, you will miss the reality of your business.
To obtain a reliable rate, base your calculations on the purchasing habits specific to your sector.
The repeat purchase rate measures customers, not transactions.
If the same person places three orders, they only count as one customer in the calculation.
Not making this distinction distorts the indicator and gives the illusion of stronger loyalty than there actually is.
A customer may have multiple accounts or email addresses.
Without cleaning up your data, you risk counting them multiple times.
Similarly, mixing very different profiles in the same analysis (recent vs. historical customers, B2B vs. B2C, etc.) makes the repeat purchase rate difficult to interpret.
Segment intelligently for truly actionable insights.
It is often said that a solid repeat purchase rate is generally between 10 and 20%.
This range is considered healthy for most e-merchants.
Below 10%, there is cause for concern.
This may indicate customer dissatisfaction, a lack of connection after the first order, or a lack of a loyalty strategy.
It may also be related to a too-short analysis window, which does not allow time for customers to return naturally.
Above 20%, it seems like good news.
But it's worth digging deeper.
A rate that's too high can mask an imbalance in your model. For example, prices that are too low may build loyalty but reduce your margins.
Or you may be dependent on a small core of loyal customers, with no renewal of your customer base.
The goal is therefore not to achieve a perfect score, but to have a rate that is consistent with your industry and, above all, constantly improving.
You've calculated your repeat purchase rate, OK.
Now you want to optimize and improve it! (Or maintain it, for the best among us.)
Here are 5 tips to help you do just that.
A well-designed loyalty program makes people want to come back.
Offering points with every purchase, unlockable tiers, or gifts once a certain amount is spent turns an order into a commitment.
It's no longer just a shopping cart, it's a relationship that's being built.
The most active customers can also access exclusive benefits.
VIP status, early access to new products, and special discounts are all signs that you value them.
And that makes all the difference.
A satisfied customer naturally wants to talk about you.
By structuring this desire through a referral program, you fuel a virtuous circle.
The referral discovers your brand, and the referrer comes back to enjoy their reward. Everyone wins.
Referrals are also a lever for loyalty.
The numbers speak for themselves.
Referred friends are 18% more likely to remain customers in the long term and make repeat purchases.
👉 Read the ultimate guide to referral programs to become an expert on recommendations
Pssst... You might find this interesting!
Loyalty programs are strategic for your repeat purchase rate, and we can probably help. Check out our platform!
Email is a powerful ally for maintaining relationships.
A follow-up a few days after a purchase with complementary products, a personalized discount, exclusive content... it's anything but spam when it's well targeted.
The secret is personalization.
Thanks to purchase data, you can trigger automatic campaigns at the right time with the right message and make every email an opportunity to return to your site.
However, your challenge will be to collect these valuable emails.
Simple solutions include offering a newsletter subscription or a free resource in the form of a lead magnet.
We can develop this collection aspect further next time... to be continued.
Content generated by your customers is a powerful driver of reassurance.
A review, a photo in context, an unboxing video.
These are all forms of social proof that speak louder than any marketing argument.
Encourage sharing and showcase it. On your product pages, in your campaigns, on your social media.
You show that your customers trust you, and you encourage others to do the same.
Loyalty is often earned after the order is placed.
Fast delivery and responsive customer service are all factors that leave a lasting impression.
But you can go even further.
A handwritten note, a small surprise gift, or a sample slipped into the package are all details that create emotion.
And a customer who feels something positive will want to come back.
It's as simple as that.
👉 To learn more about this topic, read our full article on the post-purchase customer experience.
The repeat purchase rate is not just another number.
It is a true marker of satisfaction, a reflection of the relationship you have with your customers.
The higher it climbs, the more you can count on a loyal and committed customer base.
Focusing on loyalty means choosing profitability.
Acquiring a new customer costs much more than retaining an existing one.
And above all, a loyal customer spends more, recommends you more, and costs less to activate.
This is exactly where Loyoly comes in, enabling e-commerce brands to structure and automate their retention strategy.
Loyalty programs, referrals, engaging missions, everything is designed to create a lasting and dynamic relationship with your customers.
More engagement, more repeat purchases, and a community that acts on your behalf, without you having to push them.
You move from a transactional model to a true brand relationship.
Want to turn your customers into ambassadors?
Discover our loyalty solutions!
Loyoly is a loyalty and referral platform combined with UGCs, which helps to engage customers in 40+ ways to increase LTV and social proof, while reducing CAC.
