Calculate repeat customer rates and find out why customers have not returned

Choose a measurement method before calculating

The repeat customer rate within a period can be calculated as customers with at least two completed orders in that period divided by all purchasing customers in the period. It describes activity during the period, not fully whether last month's new customers return this month.

To assess new customers, group them by first-purchase timing. The 60-day repeat rate equals cohort members with a second completed order within 60 days of the first divided by cohort members with a full 60-day observation period. Define it clearly so the team does not compare different rates.

Example of a cohort with enough observation time

Assume 100 new customers, each observed for a full 60 days since first purchase. Twenty-five place a valid second order within that window. The cohort's 60-day repeat rate is 25%.

Do not include someone who bought yesterday in the denominator and conclude they failed to return after 60 days. Agree on identifying customers across channels and avoid treating multiple accounts as separate people when valid matching data exists.

The product cycle determines the measurement window

Fast-moving goods, seasonal products and durables have different repurchase intervals. Observe 30, 60 or 90 days as appropriate, based on use behavior, and remain consistent across cohort comparisons.

Do not set a target just because another shop achieved it. Build a baseline from your data and assess changes after adjusting products, delivery or care.

Find where customers are lost before sending vouchers

Customers may not yet need more, forget the brand, buy elsewhere or have a poor experience. These causes require different actions. Discounting every case may waste money without addressing the reason.

Review service feedback, delivery timing, returns and usage questions. For customers willing to talk, briefly ask about experience and when they might need another purchase. Do not turn a check-in into repeated order pressure.

Design three care touchpoints

After delivery, prioritize usage guidance and support contacts. Once customers have had time to use the product, ask whether it meets needs. Near an appropriate replenishment cycle, remind them to repurchase if they opted to receive information.

Match messages to the purchased product and avoid recommending an item just returned. Make opting out easy. Care should increase customer convenience, not merely the shop's visibility.

Measure returning customers' contribution

Beyond repeat rate, track time between orders, net revenue, promotion costs and care costs for the cohort. If customers return only for deep discounts, more orders may not improve performance.

Compare cohorts with sufficient observation time and similar conditions. With limited data, treat results as signals for further investigation, not conclusive causal evidence. Check first-purchase quality before increasing message counts.

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