# calculate repeat purchase rate

Introduction

In the world of business, repeat purchase rate is one of the most important metrics that companies need to focus on. A high repeat purchase rate indicates that a company’s customers are loyal and satisfied with their products or services, while a low repeat purchase rate suggests that there may be issues with customer satisfaction or retention.

Calculating repeat purchase rate is a simple process that can provide valuable insights into a company’s performance. In this article, we will explore what repeat purchase rate is, how it can be calculated, and why it is important for businesses of all sizes.

## What is Repeat Purchase Rate?

Repeat purchase rate is a metric that measures the percentage of customers who make a second purchase from a company within a given time frame. This time frame can vary depending on the industry and the type of product or service being sold, but it is typically measured over a period of six months to a year.

For example, if a company has 1,000 customers in a given period and 500 of them make a second purchase during that same period, the repeat purchase rate would be 50 percent.

Repeat purchase rate is an important metric because it indicates how successful a company is at retaining its customers. A higher repeat purchase rate means that customers are more likely to return and make additional purchases, which can lead to increased revenue and profits.

### How to Calculate Repeat Purchase Rate

To calculate repeat purchase rate, you need to know the total number of customers who made a purchase during a specific time frame (usually six months to a year) and the number of those customers who made a second purchase during the same period.

Once you have these numbers, you can use the following formula to calculate repeat purchase rate:

Repeat Purchase Rate = (Number of Customers Who Made a Second Purchase / Total Number of Customers) x 100

For example, let’s say that a company had 1,000 customers in a given period and 500 of them made a second purchase during that same period. Using the formula above, we can calculate the repeat purchase rate as follows:

Repeat Purchase Rate = (500 / 1,000) x 100 = 50%

### Why is Repeat Purchase Rate Important?

Repeat purchase rate is important for several reasons. First and foremost, it is a key indicator of customer loyalty and satisfaction. If a large percentage of a company’s customers are making repeat purchases, it suggests that they are happy with the product or service and are more likely to continue doing business with the company in the future.

In addition, a high repeat purchase rate can also lead to increased revenue and profits. Customers who make repeat purchases are often more profitable than new customers because they are already familiar with the company and its products or services. They are also more likely to refer friends and family to the company, which can help to attract new customers and grow the business.

On the other hand, a low repeat purchase rate can indicate issues with customer satisfaction or retention. If customers are not returning to make additional purchases, it may be a sign that they are unhappy with the product or service or that the company is not meeting their needs. This can lead to lost revenue and decreased profitability over time.

### How do I calculate repeat purchase rate in Excel?

To calculate repeat purchase rate in Excel, you need to first create a list of all customers who made a purchase during a specific time frame. Then, you need to identify which of those customers made a second purchase during the same period. Once you have this information, you can use the formula “Number of Repeat Purchases / Total Number of Customers” to calculate the repeat purchase rate.

### What is an example of repeat purchase rate?

An example of repeat purchase rate would be if a company had 100 customers make a purchase in January and 50 of them made a second purchase in February. The repeat purchase rate for that period would be 50%.

### What is a good repeat purchase rate?

A good repeat purchase rate varies by industry, but generally speaking, a repeat purchase rate of 20% or higher is considered good. However, it is important to keep in mind that what is considered a good repeat purchase rate may vary depending on the product or service being sold.

### What is the repeat purchase rate for ecommerce?

The repeat purchase rate for ecommerce varies by industry and the type of products being sold. However, a good repeat purchase rate for ecommerce is typically between 20-40%. It is important to note that repeat purchase rate for ecommerce tends to be lower than in brick-and-mortar stores due to the nature of online shopping.

Average repeat purchase rate

The average repeat purchase rate varies by industry and the type of products or services being sold. However, a good benchmark for a healthy repeat purchase rate is around 20-25%.

Repeat purchase rate by industry

Repeat purchase rate varies greatly by industry. For example, industries such as insurance and telecommunications tend to have higher repeat purchase rates, while low-cost consumer goods tend to have lower repeat purchase rates. It is important to compare your repeat purchase rate with those of your competitors within your industry to get a better idea of your performance.

Repeat purchase rate vs retention rate

Repeat purchase rate and retention rate are related metrics, but there are differences. Repeat purchase rate measures the percentage of customers who make a second purchase within a given time frame, while retention rate measures the percentage of customers who remain active customers over a specified period of time. Both metrics are important for understanding customer loyalty and satisfaction.

Purchase rate formula

The purchase rate formula is also known as the conversion rate formula. It is used to calculate the percentage of visitors to a website or store who make a purchase. The formula is: Number of Purchases / Total Number of Visitors x 100.

Repeat purchase rate Google Analytics

Google Analytics provides reports on multiple metrics, including repeat purchase rate. Within the Ecommerce section of Google Analytics, you can find the report for “Purchase Frequency,” which provides insights into how often customers are making purchases on your website.

How to calculate repeat customer rate in Excel

To calculate repeat customer rate in Excel, you need to first create a list of all customers who made a purchase during a specific time frame. Then, you need to identify which of those customers made more than one purchase during the same period. Once you have this information, you can use the formula “Number of Repeat Customers / Total Number of Customers” to calculate the repeat customer rate.

Repeat rate

Repeat rate is another term for repeat purchase rate. It measures the percentage of customers who make a second purchase within a given time frame.

Repeat purchase examples

Some examples of repeat purchases include subscription-based products such as software or streaming services, regularly used household items such as

### What is repeat purchase rate?

Repeat purchase rate is a metric that measures the percentage of customers who make a second purchase from a company within a given time frame.

### How is repeat purchase rate calculated?

Repeat purchase rate can be calculated by dividing the number of customers who made a second purchase during a specific time frame by the total number of customers, and then multiplying the result by 100.

### Why is repeat purchase rate important for businesses?

Repeat purchase rate is important for businesses because it indicates how successful a company is at retaining its customers. A higher repeat purchase rate means that customers are more likely to return and make additional purchases, which can lead to increased revenue and profits.

### What is a good repeat purchase rate?

A good repeat purchase rate varies by industry, but generally speaking, a repeat purchase rate of 20% or higher is considered good. However, what is considered a good repeat purchase rate may vary depending on the product or service being sold.

### How does repeat purchase rate differ from retention rate?

Repeat purchase rate measures the percentage of customers who make a second purchase within a given time frame, while retention rate measures the percentage of customers who remain active customers over a specified period of time.

### How can businesses improve their repeat purchase rate?

Businesses can improve their repeat purchase rate by providing excellent customer service, offering personalized promotions or discounts, improving the quality of their products or services, and engaging with customers through social media or other channels.

### What industries typically have high repeat purchase rates?

Industries such as insurance and telecommunications tend to have higher repeat purchase rates due to the nature of their products and services.

### Can repeat purchase rate be tracked in Google Analytics?

Yes, repeat purchase rate can be tracked in Google Analytics through the “Purchase Frequency” report within the Ecommerce section.

### How often should a business track its repeat purchase rate?

The frequency at which a business tracks its repeat purchase rate may vary, but it is recommended to track it on a regular basis (e.g. monthly or quarterly) to identify trends and areas for improvement.

### Are there any potential drawbacks to focusing too much on repeat purchase rate?

Focusing solely on repeat purchase rate could lead to neglecting new customer acquisition efforts, which could limit a business’s growth potential. It is important to strike a balance between retaining current customers and attracting new ones.

## Conclusion

Calculating repeat purchase rate is a simple but powerful way to measure customer loyalty and satisfaction. By tracking this metric over time, companies can get a better understanding of how well they are retaining customers and identify areas for improvement.

A high repeat purchase rate is a good sign that customers are happy with the product or service and are more likely to continue doing business with the company in the future. It can also lead to increased revenue and profitability over time.

On the other hand, a low repeat purchase rate can indicate issues with customer satisfaction or retention, which can lead to lost revenue and decreased profitability. By monitoring repeat purchase rate and taking steps to improve it, companies can increase customer loyalty, retain more customers, and grow their business over time.