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Tip: Track this rate regularly to monitor improvements or drops, especially after launching loyalty programs or marketing campaigns.
Repeat purchase rate measures how effectively your business retains customers. A higher rate signifies that customers are returning to buy more from your brand. If your rate is low, it may indicate that your customer retention strategies need improvement.
Industry | Typical Repeat Purchase Rate (%) |
E-commerce | 20% – 40% |
SaaS / Software | 30% – 60% |
Retail | 25% – 50% |
Subscription Services | 40% – 70% |
Food & Beverage | 30% – 50% |
Note: Benchmarks can vary depending on your business model, product type, and customer engagement level. Always adjust these figures based on your specific customer data.
Scenario:
Out of 1,000 total customers, 300 made more than one purchase during the last 365 days.
Calculation:
Interpretation:
A 30% repeat purchase rate indicates that 30% of your customers are coming back for more. If this is low compared to industry benchmarks, consider optimizing your retention strategies.
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Answers to Frequently Asked Questions
A good repeat purchase rate typically ranges from 20% to 40% for most e-commerce businesses, but it can vary by industry and business model.
It’s a key metric to measure customer loyalty and engagement, as well as the effectiveness of your retention strategies.
Consider improving your loyalty program, offering personalized incentives, and optimizing your customer retention strategies.
It’s ideal to track it monthly or quarterly to keep an eye on customer retention trends and adjust your strategies as needed.
Yes, email marketing can be an excellent tool for reminding customers about your products, offering personalized discounts, and encouraging repeat purchases.