The Importance Of Measuring Your Shopify Store’s Retention Rate


Retention rate is crucial for the success of any Shopify store. Retention rate directly relates to customer loyalty and repeat purchases while also helping to keep acquisition costs down.

Repeat Purchase Rate and Returning Customer Rate are two metrics that directly measure your customer retention. If you sell subscriptions, then churn is a great calculation for your retention rate (retention rate is the remainder of your churn, e.g. 5% churn means a 95% retention rate).

Measuring your retention rate regularly can give you a lot of information about how your store is performing in a variety of areas:

  • loyalty strategy
  • product satisfaction
  • customer support
  • product research
  • customer education

New Customer Welcome campaigns, loyalty programs, and personalization are all effective ways to increase your retention rate. They take awhile to show results but many can run on auto-pilot with a bit of steering now and then.

As far the medium goes, not much can beat out email marketing. It's cheap, ubiquitous, and there's no large barrier to entry (a gatekeeper). What I like about it is that you can start simple and gradually expand it.

If you want to get your Repeat Purchase Rate measured automatically for your Shopify store, Repeat Customer Insights will calculate it for variety of customer segments, dates, and sales channels.

Eric Davis

Retain the best customers and leave the worst for your competitors to steal

If you're having problems with customers not coming back or defecting to competitors, Repeat Customer Insights might help uncover why that's happening.
Using its analyses you can figure out how to better target the good customers and let the bad ones go elsewhere.

Install Repeat Customer Insights for Shopify

This originally appeared on the LittleStream Software Blog and is made available here to cast a wider net of discovery.
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