How knowing your Repeat Sales Percentage can help your Shopify store

In Repeat Customer Insights there’s a metric called the Repeat Sales Percentage that I haven’t seen anywhere else.

It’s a simple metric that is just a simple percent.

But embedded in it is some insights that can reveal a lot about your Shopify store and your customers.

Repeat Sales Percentage is the percentage of your sales amount that is from repeat customers.

For example, if you have $100 in sales and of that $40 is from new customers who only ordered once and $60 is from repeat customers who ordered multiple times, your Repeat Sales Percentage is 60%.

At a glance this metric shows you how valuable your repeat customers actually are.

There’s a lot of business advice that touts how easy it is to sell to an existing customer but if your Repeat Sales Percentage is only 10% then it’s actually very difficult for your specific store to sell to them. If you’re pushing 70%, 80%, or 90% Repeat Sales Percentage then the majority of your revenue is from repeat customers.

This metric can also help forecast sales and inventory. If you have an overall sales forecast that is sane, you can use this to split it into new and repeat customers. That can help you work out what different products to stock, who should be targeted with promotions, and which campaigns should get the most of your investment.

If you haven’t installed Repeat Customer Insights yet, it can automatically calculate your Repeat Sales Percentage for your store. It can also let you compare it for different time periods to see if it has been improving or getting worse.

Eric Davis

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