The compounding advantage of Repeat Purchase Rate

Optimizing your customer analytics for repeat customers can have some surprising results.

When you're acquiring new customers, a 10% boost in traffic should add around 10% to your revenue. It's linear.

Improve your repeat customer metrics like the Repeat Purchase Rate by 10% and you'll often see much more than a 10% boost to your bottom-line. It'll compound, all because each customer who buys again is likely to buy again and again and again...

A 10% overall improvement in your Repeat Purchase Rate can add 20% or 50% or even doubling your revenue. It all depends on how well you're performing now.

If your Repeat Purchase Rate is low, under 25%, then you're not getting this compounding benefit. I'd recommend you read my advice on the topic and use Repeat Customer Insights to measure your performance.

Eric Davis

Learn which products build the best customers

Find which products create the most valuable customers with the First Product Analysis in Repeat Customer Insights. It goes beyond your best sellers by looking at long-term purchasing and retention behavior of your customers.

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Topics: Repeat purchase rate Repeat customers Customer retention

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