Data Analytics

DTC Metrics Series: Repurchase Rate

What is Customer Repurchase Rate answering?

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?

It will show you the number or the percentage of customers, per cohort, who made a subsequent purchase, and after which month. The metric is cumulative, so the percentage only increases, but you can see the increase month over month. As time goes on, the repurchase rate of the later months(the right-most columns) should increase or plateau as customers of each cohort have had more time to make new purchases.

In the example below 1.87% of your customers from the May 2020 cohort come back and purchased again within the first month. You can toggle to see what the repurchase rate is for 3+, 4+, 5+ repurchases.

There is something that you are doing that is enticing 148 people front the May 2020 cohort to come and purchase again in the month of May, and then a month later in June - 3054 people have come back since their original purchase and purchased again - 38.64%.

Are you sending follow up emails/sms to encourage a repurchase?

Does your product lend itself to multiple purchases during a specific time window?

If you create experiments and test the following month to try to improve those numbers you can then see how those experiments fared. As you can see for the June 2020 cohort, you have a 41.67% repurchase rate by the 2nd month, which is higher than your May 2020 cohort and in subsequent cohorts. Why is that? Did you try something different?

Learn more about Repurchase Rate by watching the quick video below.

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