What is a good repeat purchase rate?
A good repeat purchase rate is typically around 20% to 30%. Repeat purchase rate is the percentage of customers who have bought from you more than once within a specific period of time. A high repeat purchase rate means your customers are satisfied and your re-engagement efforts are working.
How to calculate and interpret your repeat purchase rate
To calculate your repeat purchase rate within any given period of time:
- Divide the number of return customers by the total number of customers.
- Multiply by 100 to get a percentage.
Consider your product offering to interpret your result within the appropriate context. Your repeat purchase rate will naturally be higher if you sell affordable or perishable goods, for example. Rates are lower for high-value goods such as tech or other luxury items.
The best way to measure your repeat purchase rate is over time. This is what will really reveal whether your customer retention efforts or working or whether you need to switch up your strategy.
5 tips to improve your repeat purchase rate
Improving purchase rate means improving customer retention and loyalty, which can sometimes be a lot cheaper than new customer acquisition. Here’s how you can start to increase repeat purchasing:
1. Promote your best sellers
First, double down on what’s working. analyse data from your online store to find out which products sell the most, and cross-reference them with your highest-value products. Then, dive into your marketing performance metrics to determine where most of these sales came from. Double down on those efforts to keep what’s working.
2. Make it easy to reorder
You can encourage repeat purchases by streamlining the reordering process with a few simple strategies
- Add a “Reorder” button: Make it simple for returning customers by placing a prominent “Reorder” button on their account page or within order history.
- Offer a subscription model: Offer a subscription service that automatically delivers frequently ordered or expendable products at regular intervals. This saves customers the hassle of placing repeated orders while ensuring a steady sales flow.
- Send post-purchase emails: Set up automated flows that remind customers when they might need to reorder. These can include links directly to the product page or an easy ‘one-click reorder’ option, reducing friction.
- Enable one-click checkout: Simplify the checkout process by allowing saved payment information so customers can quickly repurchase without going through a multi-step checkout.
- Optimise your mobile view: Many customers will want to reorder on the go, so make sure the mobile experience is smooth and user-friendly. Quick loading times and a simple interface can make a huge difference in converting repeat buyers.
3. Make the most of your post-purchase flows
A post-purchase email flow shouldn’t stop at order confirmation or an estimated delivery date. A good post-purchase flow keeps customers engaged and encourages repeat purchases through:
- Review request: After delivery, request a product review to build trust.
- Product tips: Share tips or guides on how to use their new product.
- Reorder reminder: Automate reminders when it’s time to restock consumables.
- Personalised recommendations: Suggest related products based on their purchase.
- Exclusive offers: Reward loyalty with discounts or early access to new items.
4. Segment your customers and personalise your messages
Effective segmentation is crucial for boosting repeat purchases. Here are a few high-impact segments to target:
- First-time buyers: Encourage a second purchase by offering a discount or upselling popular products they haven’t bought yet.
- Lapsed buyers: Re-engage customers who haven’t purchased recently with win-back flows, offering a promo code for an extra nudge.
- VIP customers: Target your most loyal customers with high-value products or personalised offers to drive further purchases.
5. Send replenishment reminders for subscription customers
Setting up automated replenishment reminders for products your customers use regularly can work wonders for boosting repeat purchases. Here’s how you can make this easy for both you and your customers:
- Set up the flow: Using your email platform, create an automated flow that triggers reminders at set intervals after a purchase. These reminders can include product details, a simple “click to restock” button, and even a discount for extra incentives.
- Estimate when they’ll need more: Use purchase data to determine when a customer is likely running low. If you know how long a product typically lasts, say, 30 days for skincare or 60 days for supplements, time your reminder email before they might need a refill.
- Personalise it: Not every customer uses products at the same pace. Tailor your reminders based on individual purchasing patterns so they land when the customer needs them the most.
- Upsell or cross-sell: Use the opportunity to recommend related products. For example, if someone is refilling their skincare, suggest a complementary product or a premium version to increase the value of the order.
Ready to increase your purchase rate with automated messages? Sign up for Klaviyo and use automated flows such as post-purchase messages, replenishment reminders, and more to create loyal customers without a lot of the manual work that used to be needed for retention.