Retention
How to increase repeat purchase rate in ecommerce
Repeat purchase rate answers a blunt question: do people come back?
If they do not, every growth plan is a customer-replacement plan. That gets expensive when CAC rises.
Answer first
To increase repeat purchase rate in ecommerce:
- Measure second-order rate in a fixed window (30/60/90 days) by cohort.
- Shorten time-to-second-order with usage, replenishment and post-purchase ops.
- Give a non-discount reason to return.
- Protect contribution while you do it.
Open rates are not the goal. Second orders at healthy margin are.
Define the metric once
Pick:
- Window: 90 days is a good default for many DTC categories
- Numerator: customers with 2+ orders in window
- Denominator: customers who first ordered at the start of the cohort
Track it monthly by cohort. If you only look at a lifetime blended number, you will hide recent damage.
Diagnosis before tactics
Split non-repeaters into buckets from support, reviews and surveys:
| Bucket | Signal | First fix |
|---|---|---|
| Product miss | Quality, fit, taste, results | Product or expectation, not email |
| Timing miss | They would repurchase later | Replenishment and reminders |
| Offer miss | Nothing makes the second buy obvious | Bundle / routine / subscription design |
| Experience miss | Shipping, packing, support pain | Ops before creative |
| Price training | Waiting for the next 20% off | Discount policy |
Most brands skip this table and launch a flow. Then they wonder why repeat rate barely moves.
Plays that usually move the number
1. Replenishment timed to real usage
If a pouch lasts 28 days, a day-20 note beats a random newsletter. Guessing is fine at first. Then use order gaps to refine.
2. Post-purchase that drives usage
People repurchase what they use. Education, routines and "how to get the result" content beat "here is 15% off" as a first message.
3. Second-order offer design
Try a complementary add-on or a better-value bundle for order two, not a blanket code. Margin first.
4. Remove friction
Saved preferences, easy re-order links, subscription only where it is honest. Friction kills repeat as often as weak creative does.
Worksheet (copy into Notion)
| Cohort month | New customers | 90-day repeat % | Median days to 2nd order | Repeat AOV | Notes |
|---|---|---|---|---|---|
Add one experiment per month. Kill it if contribution per repeater falls.
Tie it to LTV and CAC
Repeat rate is often the fastest lever on LTV. Higher LTV changes what you can pay for CAC, which is how brands escape the paid treadmill. See how to increase LTV and LTV:CAC.
On the UK subscription supplements work I mentioned elsewhere, LTV lift of about 2.5x sat on top of people actually coming back, not on loftier brand films.
What not to do
- Blast deeper discounts every time repeat rate dips
- Compare your rate to a skincare brand if you sell a one-time gadget
- Call it back if only email KPI dashboards moved
Increase repeat purchase rate like a P&L owner. Second orders are the proof.
Questions founders ask
What is a good repeat purchase rate?
It depends on category and purchase cycle. Compare to your own last four cohorts before you chase a public number. A replenishable product should beat a one-and-done gift product. Direction and margin matter more than a borrowed benchmark.
Is repeat rate the same as retention rate?
Closely related, different math. Repeat purchase rate is usually the share of customers with a second order in a window. Retention curves track who is still active over time. Use both if you can. Start with second-order rate if you are early.
Will a loyalty points program fix this?
Sometimes it helps. Often it becomes a discount by another name. Fix timing, product usage and offer architecture first. Add points only if contribution still holds.
Next step
Bring your P&L, CAC and LTV. We will tear down what is actually broken, then decide if a deeper engagement makes sense.