What is Repeat Purchase Ratio, and how do you calculate it?
In short – The proportion of customers who make repeat purchases over a given period.. A key marketplace metrics you should track.
Repeat Purchase Ratio Formula
Repeat Purchase Ratio = Number of Repeat Customers / Total Customers
Repeat Purchase Ratio measures the percentage of customers who return to make additional purchases. A high ratio indicates customer satisfaction and loyalty, often driven by quality products, effective marketing, and a seamless user experience. Improving this metric can significantly boost revenue and brand strength. This metric provides deep insights into business performance, helping to identify trends, optimize strategies, and improve overall marketplace efficiency.
How can you find your Repeat Purchase Ratio?
You should generally be able to calculate your Repeat Purchase Ratio with tools you already posess. If that's not the case, signing up for an analytics tool may make sense.
Among others, twosided is one of the tools you could consider. Out-of-the-box, you'll get over two dozens marketplace KPIs and detailed tracking for your supply, demand and other factors that determine marketplace health.
Explore other metrics
Net Promoter Score (NPS)
A measure of customer loyalty and satisfaction based on user feedback.
Average Order Value (AOV)
The average value of orders placed on the platform.
Supplier Lifetime Value (SLV)
The projected revenue generated by a supplier over their tenure on the platform.
Repeat Purchase Ratio
The proportion of customers who make repeat purchases over a given period.
Customer Lifetime Value (CLV)
The projected revenue a customer will generate during their relationship with the business.