repurchaserates

Repurchase rates are metrics used to quantify how often customers return to buy again from a brand or product line within a defined time window. They are commonly used in retail, e-commerce, subscription services, and consumer goods to gauge customer loyalty, satisfaction, and the effectiveness of retention efforts.

There are two common definitions. The customer-based repurchase rate is calculated as the number of customers who made at least two purchases in the period divided by the total number of customers in that period, expressed as a percentage. Another approach is the revenue-based measure, sometimes called the share of wallet from repeat purchases, defined as revenue from repeat purchases divided by total revenue in the period. In practice, businesses may report both to capture loyalty (frequency) and sales impact (revenue).

Data requirements include unique customer identifiers, purchase events, and clearly defined time windows. Accurate measurement often involves cohort analysis (grouping customers by acquisition period) and careful handling of multi-channel purchases, gift purchases, and promotions. A higher repurchase rate generally indicates stronger customer retention, while lower rates may signal issues with product value, pricing, or onboarding.

Limitations include sensitivity to window length, seasonal effects, and atypical buying patterns. The metric should be used alongside related indicators such as customer lifetime value, retention rate, purchase frequency, and overall revenue to provide actionable insights.

Used effectively, repurchase rates inform marketing and product strategies, such as loyalty programs, onboarding optimization, personalized re-engagement, and subscription models, with the goal of improving long-term customer value. For different contexts, benchmarks like 30-day, 90-day, and 12-month repurchase rates are commonly reported.