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Repurchase Rate

What is Repurchase Rate?

Customer Repurchase Rate answers the question: how many of your customers are making subsequent purchases 2, 3, 4, 5, 10 more times? This is answering the question: out of customers who originally purchased in each month, how many made another purchase? And when? Repurchase Rate will tell you that by month 6 for July 2020, 52.7% of your cohort has made 2+ purchases by that point, and then in month 7, 56.22% made a repurchase. Repurchase rate numbers increase to the right since it's looking for how long does it take for them to come back and make another purchase. The more repurchases the customers create, the more it will increase these numbers. The goal is to have a higher percentage for both as close to 100% (& the left of the chart as purple/pink as possible in Peel’s data visualization).

How to improve Repurchase Rate

Improving your repurchase rate is all about knowing the right time to engage your customers. To you have a consumable, replenishable product? If so, it’s important to know when your customers’ supply of that product is ready for a refill. At that point it is easy to use your Repurchase Rate by Cohort metric to see when different groups of customers, who made their first purchases in certain months, need a nudge via SMS or email campaigns. You can use this same method even if you don’t sell a replenishable product. The key here is to really follow your Repurchase Rate data to identify the key times to reach out to your customers.

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Repurchase Rate

What is Repurchase Rate?

Customer Repurchase Rate answers the question: how many of your customers are making subsequent purchases 2, 3, 4, 5, 10 more times? This is answering the question: out of customers who originally purchased in each month, how many made another purchase? And when? Repurchase Rate will tell you that by month 6 for July 2020, 52.7% of your cohort has made 2+ purchases by that point, and then in month 7, 56.22% made a repurchase. Repurchase rate numbers increase to the right since it's looking for how long does it take for them to come back and make another purchase. The more repurchases the customers create, the more it will increase these numbers. The goal is to have a higher percentage for both as close to 100% (& the left of the chart as purple/pink as possible in Peel’s data visualization).

How to improve Repurchase Rate

Improving your repurchase rate is all about knowing the right time to engage your customers. To you have a consumable, replenishable product? If so, it’s important to know when your customers’ supply of that product is ready for a refill. At that point it is easy to use your Repurchase Rate by Cohort metric to see when different groups of customers, who made their first purchases in certain months, need a nudge via SMS or email campaigns. You can use this same method even if you don’t sell a replenishable product. The key here is to really follow your Repurchase Rate data to identify the key times to reach out to your customers.

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