From First Purchase to Forever: Elevate Your Business with High Repeat Purchase Rates

Imagine having a customer base that not only loves your products but also returns time and time again. Those are the ones who generate a steady stream of revenue and spread the world about your store. They are the lifeblood of your business! 

As a Shopify store owner, it's indeed desirable to see customers come back for more, which can be reflected by the repeat purchase rate. This measurement provides valuable insights into customer loyalty, engagement, and the effectiveness of your efforts in encouraging repeat purchases. 

In this article, we will guide you through the intricacies of repeat purchase rate measurement, uncover proven strategies to boost customer loyalty, and drive sustainable growth. This will help shape your strategies to have a desired repeat purchase rate, transform your customers into loyal brand advocates, and then pave the way for long-term success.

Learn more: eCommerce Remarketing and Retargeting: The Secret to Keep Customers Coming Back [+ Best Strategies]

What is the repeat purchase rate?

First, let's understand what a "repeat purchase" is. When a customer returns to your Shopify store to complete another transaction at a later date, they are categorized as a “repeat purchase.”

So, the repeat purchase rate (RPR) measures the proportion of a store's customers who make more than one purchase, reflecting their loyalty and the store's ability to retain customers.

A high repeat purchase rate indicates that customers are satisfied, loyal, and engaged with your business. For example, if your repeat purchase rate is 20%, it means that out of all the customers who made a purchase within a specific period, 20% have made more than one purchase. This number shows that you are successfully retaining a portion of your customers and encouraging them to return, though there is still room for improvement.

Learn more: Referral Marketing: Ultimate Guide to Drive Sales and Traffic

Why should you track repeat purchase rate?

Repeat purchase rate is more than just a number; it's a window into your customers' loyalty and the effectiveness of your marketing and retention strategies.

Maximize customers' satisfaction and lifetime value

The repeat purchase rate shows that customers are not only satisfied with their initial purchase but are also motivated to return and make additional purchases. This indicates a positive perception of your brand, products, and overall customer experience. By tracking this metric, Shopify owners can pinpoint areas for improvement and take actions to boost customer satisfaction.

Besides, repeat purchases significantly enhance customer lifetime value (CLV). Repeat customers generate more revenue than one-time buyers, offer opportunities for upselling and cross-selling, and contribute to positive word-of-mouth marketing. From then, monitoring the repeat purchase rate provides businesses with valuable insights to increase customer retention and maximize CLV.

Optimize cost-effectiveness

The success rate of selling to an existing customer is 60-70%, while this rate of selling to a new one customer is 5-20%. This means that nurturing repeat customers can significantly impact a company's bottom line. 

Also, keeping an existing customer can be five times cheaper than finding a new one. Tracking repeat purchase rate allows businesses to understand the cost-effectiveness of their marketing and customer acquisition efforts, thereby allocating their resources more efficiently and reducing customer acquisition costs.

Learn more: Top 15 Strategies for Boosting eCommerce ROI in 2024 [+Examples]

Build brand advocacy

Customers who make repeat purchases are more likely to recommend the products or services to others, leading to positive word-of-mouth marketing and brand growth. By tracking repeat purchase rate, businesses can identify loyal customers who can potentially become brand ambassadors that recommend your stores to others.

How is a good repeat purchase rate?

Here's a rough breakdown of what the repeat purchase rate percentages could indicate:

• Below 10%: This rate may suggest that the business is struggling to retain customers and encourage repeat purchases. It could indicate a need to focus on improving the customer experience, loyalty programs, or marketing strategies to drive customer retention.
• 10% to 20%: This is an average range. It indicates that a portion of customers are making repeat purchases, but there is still room for improvement. 
• 20% to 30%: This range is generally considered a good sign, indicating a level of satisfaction and loyalty. 
• Above 30%: A repeat purchase rate above 30% is excellent. It indicates a high level of customer loyalty and engagement. 

It is important to note that a good range for the repeat purchase rate in Shopify stores can vary depending on the industry, business model, and customer behavior. 

We recommend you compare the repeat purchase rate to industry benchmarks, track it over time, and focus on continuous improvement to drive customer retention and loyalty.

Learn more: How to Promote Shopify Store: 15 Solid Strategies + Inspiring Examples [2024]

How to calculate repeat purchase rate for Shopify stores?

General formula

The repeat purchase rate will be presented as a percentage, indicating the proportion of customers who have made multiple purchases. 

To calculate the repeat purchase rate for Shopify stores, you can use the following general formula:

Repeat Purchase Rate = (Number of Repeat Customers / Total Number of Customers) * 100.

For example, if you had 500 unique customers and 100 of them made more than one purchase within a month: 

Repeat Purchase Rate = (100 / 500) * 100 = 20%

Guide to Shopify dashboard

(Source: arrowintegration)

How to increase repeat purchase rate

Improve product quality

When customers receive high-quality products or services, they develop a sense of trust towards your brand and feel more confident to make repeated orders. 

To do that, you should frequently collect and analyze customer feedback to understand their needs, preferences, and pain points, then make any necessary improvements and address any issues or concerns raised by customers.

Learn more: 24 One Product Store Ideas in 2024

Offer a seamless buying experience

A smooth and time-saving buying process can make customers happy and more likely to return for repeat purchases. Creating a well-designed Shopify storefront is a must, as almost all your customer buying behaviors take place there. 

Implement a user-friendly navigation menu to help customers easily find what they are looking for. A streamlined and user-friendly checkout page with minimized steps required is also a nice point.

We recommend you to leverage Shopify top page builder - GemPages to easily customize your Shopify storefront and create a smooth buying journey that will keep customers engaged and coming back for more. GemPages offers a variety of templates and drag-and-drop features to help you design a professional-looking website without any coding knowledge required. 

Implement loyalty program

A well-designed loyalty program can incentivize customers to make repeat purchases. You can offer rewards, discounts, exclusive offers, or points-based systems that accumulate with each purchase. Also, it is important to regularly engage with program members, provide your customers with special perks, and make them feel valued.

Learn more: 6 Best Shopify Loyalty Apps to Boost Customer Retention

Offer upsells and cross-sells

When customers make a purchase, suggest complementary or upgraded products or services that enhance their experience and encourage your customers to buy more. Upselling involves offering a higher-priced item, while cross-selling involves suggesting related or additional items.

Learn more: Cross-selling and Up-selling: The Ultimate Guide to Driving

The Cowboy utilizes cross-sell technique by suggesting customers a selection of accessories for their bike.

Promote multiple marketing channels

Expand your reach by promoting your products or services through various marketing channels. By diversifying your marketing channels like social media, email marketing, content marketing, and offline channels like print media or local events, you can reach a wider audience and increase the chances of repeat purchases. 

Learn more: 10+ Father’s Day Marketing Campaign Ideas in 2024

Key takeaway

Mastering the art of repeat purchase rate is the secret sauce to unlocking long-term success for your Shopify store. Remember, you cannot enhance the allure of your purchases without a professional and high-converting storefront. Shopify owners today are fortunate to have access to a multitude of seamless page builders, such as GemPages, that have revolutionized the process.

We hope that the strategies and tactics in this ultimate guide will not only help increase your customer loyalty but also fuel consistent revenue growth for your sustainable business. 

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