Glossary / Repeat Customer Rate
Repeat Customer Rate
Repeat customer rate is the percentage of customers who make more than one purchase in a given period. It is calculated as repeat customers divided by total customers. Raising repeat customer rate is one of the highest-leverage growth levers for e-commerce because acquiring an existing customer's second order is dramatically cheaper than acquiring a new customer.
Formula
Repeat customer rate (%) = Customers with 2+ orders / Total customers × 100
Example
An online store had 1,000 customers last quarter; 250 of them placed 2 or more orders. Repeat customer rate is 25%. E-commerce benchmarks: 25-30% is typical; over 40% is strong; over 50% is best-in-class.
Why it matters
Repeat customer rate is a leading indicator of product-market fit and brand strength. New-customer-only revenue requires constant acquisition spend; repeat-customer revenue compounds.
Related terms
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