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Glossary · Metric

What is Returning Customer Rate?

Returning customer rate is the percentage of buyers in a given period who had bought before. Healthy e-commerce aims for the 25%–40% band. The higher this rate, the less the business depends on advertising.

Detail

Winning a new customer costs many times more than selling to an existing one. Even so, most brands spend nearly their entire budget on new customers. Email and WhatsApp automation, a loyalty structure and well-timed repurchase reminders are the three tools that lift this rate fastest.

Formula

Returning customer rate = Repeat customers ÷ Total customers × 100

Example

280 of 1,000 monthly customers had bought before → 28%.
FAQ

Common questions on this topic.

How is Returning Customer Rate calculated?

Returning customer rate = Repeat customers ÷ Total customers × 100

280 of 1,000 monthly customers had bought before → 28%.

Why does Returning Customer Rate matter?

Winning a new customer costs many times more than selling to an existing one. Even so, most brands spend nearly their entire budget on new customers. Email and WhatsApp automation, a loyalty structure and well-timed repurchase reminders are the three tools that lift this rate fastest.

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