Some Shopify store owners have asked, what's a good Repeat Purchase Rate?
25% is what I consider the low-bar. Some large-scale studies have found 27% to be the average Repeat Purchase Rates but that's only an average.
I've seen stores with 60%+ and stores with single digits. The higher the rate, the better the store is performing across almost every metric.
It makes sense right. If 3 out of 5 customers come back to buy again and again, that's going to be a very solid store. They'll have capital to invest in improvements, experiment, and try to get their rate even higher.
A store with single digits means less than 1 out of 10 customers come back. They're going to be spending most of their time and resources on getting new customers which is going to drive up their costs (CAC).
If you're below 25%, your first goal is to aim for that. That's only 1 out of every 4 customers. Totally do-able, though you might need to invest into your business foundation to get there.
If you're above 25%, aiming for a better Repeat Purchase Rate would be useful but there might be better goals. Speeding up purchases (Customer Purchase Latency), raising Average Order Values, or even a general order volume increase might be more valuable.
You can use Repeat Customer Insights to measure and track your Repeat Purchase Rate over different times. It'll give you specific advice to better target customers and improve your weaker metrics.
Eric Davis
Measure which customers you're retaining and which you're losing
In order to keep your best customers, you need visibility into what's going on with them. Repeat Customer Insights will help you track down where you're losing customers and how to better target new ones.