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

Use cohorts to find out who the best customers are in your Shopify store

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Repeat Customer Insights will automatically group your customers into cohorts based on when they first purchased. This will let you see how the date customers bought would impact their behavior.

Install Repeat Customer Insights for Shopify