A good repeat purchase rate is typically around 20% to 30%. This figure represents the percentage of customers who’ve bought from you more than once and covers a specific period, such as a week, month, or year.
Still, the benchmark depends on factors such as the range, nature, and value of your products. A high repeat purchase rate indicates that your customers are satisfied and your re-engagement efforts are successful.
How to calculate and interpret your repeat purchase rate
To calculate the repeat purchase rate:
- Divide the number of return customers by the total number of customers who’ve made a purchase
- Multiply it by 100 to get a percentage
Consider your product offering to interpret the figure accurately. The repeat purchase rate will naturally be higher for ecommerce businesses that sell affordable and perishable goods. The rate will be lower for those selling high-value goods, such as tech.
Measure your repeat purchase rate over time to detect changes in customer behavior and adjust your marketing strategy for better results.
5 tips to improve your repeat purchase rate
1. Analyze your customers’ behavior and your marketing strategy
Figure out which of your products get the most repeat orders and promote them. Use analytics tools and key performance indicators, such as the conversion rate, to determine which marketing channels and initiatives attract repeat customers most. Double down on these strategies to boost your repeat purchase rate.
2. Enable automatic reordering for loyal customers
If you sell expendable goods, give your customers the option to reorder automatically. That way, they can get their favorite product in time without having to order repeatedly. They’ll save time and effort, and your repeat purchase rate will grow in turn.
3. Stay in touch with customers
To ensure your brand stays top-of-mind, engage with customers after they’ve bought from you. Encourage them to follow you on social media, where you should post valuable content.
Direct marketing is also an excellent way to stay connected with your customers. If they’ve expressed consent, send them:
- Updates
- Seasonal product alerts
- Personalized product recommendations
- Birthday and anniversary messages
4. Segment your customers and personalize your messages
Group your customers based on their preferences and behaviors and send tailored, well-timed messages that convert.
For example, analyze purchase history to identify the types of products your customers buy the most. Use this information to create segments and offer personalized product recommendations.
If they’ve previously made a large purchase, such as a phone, consider suggesting relevant accessories like cases or screen protectors. Top it off with a promo discount code for an extra nudge.
5. Use automation to save time and effort
Marketing automation makes reaching out to customers easier. Set up email or SMS flows and define actions or events that trigger your messages. That way, you can send timely messages and stay connected.
For example, send a transactional email after the customer has ordered to thank them for the purchase and ask for feedback. If they aren’t satisfied, reach out quickly and offer a gift or a coupon for reconciliation.
Another great idea is to enable replenishment flows. Estimate when the customers might need to reorder a product and send them automatic reminders. They’ll appreciate the thought and might buy again.
Klaviyo is a platform packed with features to help you set up flows and improve your marketing performance and repeat purchase rate. You get benefits like:
- Quick campaign and flow building with templates
- Easy, prompt-based segmentation with Klaviyo AI to send tailored promotional messages that effectively encourage purchases
- AI-driven predictive analytics to identify customers’ favorite products, foresee their next orders, and push specific items
- Detailed but clean reports to track the repeat purchase rate, compare it against benchmarks, and visualize trends
Sign up for Klaviyo and send emails, SMS messages, and push notifications that will have your customers returning for more.
Additional resources
- What is a good open rate for email?
- What is CVR?
- What is product differentiation?
- What is a click rate?
- What is email nurture?