A simple rule of thumb for repeat customers

A lot of customer retention and analysis can get complex and confusing fast.

But there’s one rule of thumb you can use to tell if you’re doing a good job keeping customers coming back:

At least 1 of every 4 customers should be a repeat customer.

If that’s not happening, you’re going to want to figure out why and fix it. Otherwise you’re missing out on a huge portion of revenue.

This is also called the Repeat Purchase Rate and is one of the metrics that Repeat Customer Insights tracks. It’s more advanced than the 1-in-4 rule of thumb but that’s what you’d expect.

Eric Davis

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