Getting customers to buy from your e-commerce app is exciting, but what’s even better? Getting them to come back and buy again! That’s where your repeat purchase rate comes in. This number tells you how often your customers return to shop with you, and it’s a big deal because loyal customers are usually more valuable than new ones.

Why should you care? Well, when more people come back to buy again, you spend less money chasing new customers. Plus, it shows you’re doing something right. 

Let’s break down how you can calculate this significant number and what it means for your business.

What is the Repeat Purchase Rate in E-commerce?

The repeat purchase rate is a way to see how many of your customers come back to buy from your e-commerce app again. Think of it like running a candy store: you want kids not just to buy candy once, but to keep coming back for more treats!

In simple terms, the repeat purchase rate tells you what percentage of shoppers make more than one purchase. It's important because customers who return are often happier and more loyal. They already know and like what you offer, so they're more likely to buy again.

How does this matter to your business? Well, getting people to come back and shop again usually costs less than finding brand-new customers. Plus, repeat customers might tell their friends about your app, bringing in even more business.

Understanding your repeat purchase rate helps you see how well you're doing in keeping customers happy and engaged. The higher the number, the better your chances are for growing your sales without spending a lot more money.

Calculating Repeat Purchase Rate for E-commerce Apps

Let’s talk about how to figure out your repeat purchase rate. Don’t worry, it’s easier than it sounds! You just need a simple formula to get started:

Repeat Purchase Rate = 

(Number of Customers Who Bought More Than Once / Total Number of Customers) x 100

So, if 100 people bought something from your app, and 30 of them came back to buy again, your repeat purchase rate would be:

(30 / 100) x 100 = 30%

That means 30% of your customers liked their experience enough to shop with you again. The higher that percentage, the more loyal your customers are!

This number helps you see how well you're keeping your customers happy. If it's lower than you'd like, maybe it’s time to add some fun ways to keep them coming back, like rewards or personalized offers. Tools like Nudge can really help here, using your data to give the right people a little push towards their next purchase.

Data Sources for Calculating Repeat Purchase Rate

To figure out your repeat purchase rate, you need to know where to gather the right information. Luckily, most e-commerce apps already collect this data automatically. Here are a few key sources to look at:

1. Customer Data in Your CRM: Your CRM (Customer Relationship Management) tool is a goldmine for tracking customer purchase history. It shows who bought what, and when, making it easy to spot repeat buyers.
2. E-commerce Analytics Tools: Platforms like Google Analytics, Shopify, or WooCommerce provide detailed reports on customer behavior. They can show you how many customers return for a second purchase, which is exactly what you need.
3. Your App’s Internal Data: Many e-commerce apps have built-in analytics. If your app does, you can use this data to track customer transactions and calculate your repeat purchase rate without needing external tools.
4. Third-Party Engagement Tools: Tools like Nudge can also help you gather insights. By connecting with your CRM or app data, Nudge helps track customer journeys and purchases, and then sends targeted nudges to increase repeat purchases.

The data you collect from these sources will help you understand your repeat purchase rate and spot opportunities to improve it. The more accurate your data, the better your chances of growing your customer loyalty.

Pros and Cons of a High Repeat Purchase Rate

Having a high repeat purchase rate sounds great, right? But like most things in business, there are both upsides and downsides to it. Let’s break them down.

Pros of a High Repeat Purchase Rate:

1. Lower Marketing Costs: When customers come back on their own, you spend less on ads and promotions. It’s much cheaper to keep an existing customer than to find a new one.
2. Higher Customer Lifetime Value: Customers who return tend to spend more over time, boosting their overall lifetime value. This means more profit from each customer in the long run.
3. Stronger Brand Loyalty: If people keep coming back, it’s a sign they trust and love your brand. Loyal customers can also turn into brand ambassadors, recommending you to others.
4. More Predictable Revenue: With a solid base of repeat customers, it’s easier to predict future sales and plan your inventory or marketing strategies accordingly.

Cons of a High Repeat Purchase Rate:

1. Over-reliance on Existing Customers: While it’s great to have loyal customers, you don’t want to depend too much on them. It’s still important to attract new customers to keep growing.
2. Customer Expectations: Repeat customers may expect more discounts, rewards, or personalized experiences. This can increase pressure to deliver more each time.
3. Risk of Saturation: If your customer base isn’t growing and you’re only relying on repeat buyers, your business could stagnate over time.

Overall, a high repeat purchase rate is something to aim for, but it’s important to balance it with efforts to attract new customers. That way, you can grow both loyalty and your customer base at the same time.

Common Benchmarks for E-commerce Repeat Purchase Rates

So, what’s considered a good repeat purchase rate in e-commerce? It’s helpful to know where your business stands compared to industry benchmarks. These numbers can vary depending on the type of products you sell, your target market, and how well you engage your customers.

Here are some general benchmarks:

1. Average Repeat Purchase Rate: For most e-commerce businesses, a repeat purchase rate between 20-40% is considered standard. If you’re hitting this range, you’re doing pretty well in keeping customers around.
2. Best-in-Class: Top-performing e-commerce businesses often see repeat purchase rates of over 40%. These companies typically have strong customer engagement strategies, such as loyalty programs, personalized recommendations, or outstanding customer service.
3. Lower Range: If your repeat purchase rate is below 20%, you may need to revisit your customer retention strategies. It’s a sign that customers might not be finding enough reasons to return, and there could be room to improve their experience.

If you’re below the average, don’t worry! There are plenty of strategies to improve your repeat purchase rate, which we’ll dive into next.

Strategies to Improve Repeat Purchase Rate in E-commerce Apps

If your repeat purchase rate isn’t where you want it to be, don’t worry! Here are some simple strategies you can start using to get customers coming back for more:

1. Personalized Experiences: Customers love it when you remember their preferences. Use tools like Nudge to gather data from your app/cRM and create personalized recommendations, offers, or even product reminders. Tailoring the shopping experience makes customers feel valued and increases the chances of a repeat purchase.

2. Loyalty Programs: Offering rewards for coming back is one of the easiest ways to keep customers engaged. Create a loyalty program that gives points, discounts, or exclusive offers for repeat buyers. Gamification features, like challenges and rewards, can make the process even more fun and engaging.

3. Shoppable Stories and Videos: Add interactive content, like shoppable stories or videos, to shorten the path from browsing to buying. This makes the shopping experience seamless and engaging, helping convert casual browsers into repeat customers.

4. Automated Follow-Ups: Send a friendly email or in-app notification reminding customers about items they’ve shown interest in or encouraging them to reorder products they’ve bought before. You can also offer small incentives like discounts or free shipping on their next purchase to sweeten the deal.
   
   
5. Great Customer Service: A positive experience with customer service can turn a one-time buyer into a loyal customer. Make sure your support team is responsive and helpful, addressing any issues quickly and effectively.
   
   
6. Easy Checkout Process: Make sure the checkout process is fast and hassle-free. A simple, smooth experience can encourage customers to return, while a frustrating one might push them away. Consider saving customer information for quicker future purchases.
   
   
7. Gamification and Rewards: Introduce elements like streaks, gamified referrals, or challenges. These little nudges not only keep customers engaged but also give them a reason to come back. Rewards tied to these activities can turn casual customers into loyal fans.
   

By implementing these strategies, you can create an engaging and personalized shopping experience that encourages customers to return. 

Conclusion

Getting your customers to come back again and again is key to growing your business. It shows they trust you and enjoy what you’re offering. Simple things like personalizing their experience, giving rewards, and making checkout easy can turn one-time shoppers into loyal customers.

The best part? A higher repeat purchase rate means you're spending less to keep your business growing. Want to make it happen? Book a demo and see how Nudge can help you keep your customers coming back!