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Repeat Orders Rate per Cohort

What is Repeat Orders Rate per Cohort?

Repeat Orders Rate is a metric that tells you the rate at which your customers are making repeat orders within their given monthly cohorts. This is calculated by taking the number of orders that are repeat orders and dividing by the amount of customers. Expressed as a formula: Repeat Orders Rate = # of Repeated Orders / # of customers. This draws a comparison between orders and customers. For example, 200% would mean that all customers from that given cohort made two repeat orders (which represents a healthy and loyal customer base).

How to Improve Repeat Orders Rate per Cohort

Improving your Repeat Orders Rate per Cohort is a practice in knowing when your customers are most likely to make their next purchase based on their cohorts’ purchasing habit. From there, you want to nudge those within the cohort who have not made a repeat purchase at the same rate as the average of the cohort. The intersection between good product offers or discount incentives with strategic timing based on your cohort data will help you improve this rate.