The Compounding Advantage Of Repeat Purchase Rate


Optimizing your customer analytics for repeat customers can have some surprising results.

When you’re acquiring new customers, a 10% boost in traffic should add around 10% to your revenue. It’s linear.

Improve your repeat customer metrics like the Repeat Purchase Rate by 10% and you’ll often see much more than a 10% boost to your bottom-line. It’ll compound, all because each customer who buys again is likely to buy again and again and again…

  • 10% more orders on the 1st -> 2nd orders
  • 10% more orders on the 2nd -> 3rd orders (including the additional orders from the 1st -> 2nd)
  • 10% more orders on the 3rd -> 4th orders (including the additional orders from the 1st -> 2nd and the 2nd -> 3rd)
  • and so on.

A 10% overall improvement in your Repeat Purchase Rate can add 20% or 50% or even doubling your revenue. It all depends on how well you’re performing now.

If your Repeat Purchase Rate is low, under 25%, then you’re not getting this compounding benefit. I’d recommend you read my advice on the topic and use Repeat Customer Insights to measure your performance.

Eric Davis

This originally appeared on the LittleStream Software Blog and is made available here to cast a wider net of discovery.
Learn How The Metaverse Will Reshape E-Commerce Forever

Learn How The Metaverse Will Reshape E-Commerce Forever

MMS Marketing: Best Practices and Examples for Ecommerce

MMS Marketing: Best Practices and Examples for Ecommerce


Steve has entrepreneurship in his DNA. Starting in the early 2000s, Steve achieved eBay Power Seller status which propelled him to become a founding partner of, a contact lens and eyewear retailer. Four years later through a successful exit from that startup, he embarked on his next journey into digital strategy for direct-to-consumer brands.

Currently, Steve is a Senior Merchant Success Manager at Shopify, where he helps brands to identify, navigate and accelerate growth online and in-store.

To maintain his competitive edge, Steve also hosts the top-rated twice-weekly podcast eCommerce Fastlane. He interviews Shopify Partners and subject matter experts who share the latest marketing strategy, tactics, platforms, and must-have apps, that assist Shopify-powered brands to improve efficiencies, profitably grow revenue and to build lifetime customer loyalty.

You May Also Like
payday loans loans for bad credit
where can i buy clomid buy clomid