What Is Repeat Purchase Rate? — Beginner's Guide and Formula

What exactly is Repeat Purchase Rate? In plain terms, Repeat Purchase Rate (RPR) measures how many customers come back to buy again. It’s a straightforward, actionable metric that gives businesses a sense of customer loyalty and the effectiveness of retention efforts.

Core definition and formula

At its simplest, RPR is calculated as:

RPR = (Number of customers who made more than one purchase during the period / Total number of unique customers during the period) × 100

Example: If 1,000 unique customers bought in a quarter and 250 of them bought at least twice during that quarter, RPR = (250 / 1,000) × 100 = 25%.

What counts as a repeat purchase?

• Define your time window: monthly, quarterly, annual, or cohort-based. The window should reflect your product’s buying cycle.
• Decide whether returns, exchanges, or subscriptions count as purchases.
• Exclude internal transactions (test orders, employee purchases) from unique customer counts.

Why the definition matters

RPR can vary dramatically depending on the chosen timeframe and rules. Comparing quarterly RPR across a business with both consumable and durable goods will be misleading unless segmented. Always document your definition to ensure consistent benchmarking.

Related metrics to use with RPR

• Customer Lifetime Value (CLV): RPR feeds directly into CLV calculations by estimating repeat behavior probability.
• Repeat Purchase Rate vs. Repurchase Frequency: RPR tells you who returns; repurchase frequency (average number of purchases per returning customer) tells you how often.
• Churn Rate and Retention Rate: Complement RPR for subscription models or services.

How to measure RPR effectively — step-by-step

1. Set the period: Choose a timeframe relevant to your industry (30 days for fast-moving consumables, 12 months for durable goods).
2. Prepare clean data: De-duplicate customers, normalize customer IDs, and ensure returns are accounted for consistently.
3. Compute the metric: Count unique customers with >1 purchase, divide by total unique customers, and multiply by 100.
4. Segment your analysis: Break RPR down by acquisition channel, cohort, product category, geography, or customer lifetime stage.
5. Track over time: Use cohorts to observe how RPR evolves for customers acquired in different months or campaigns.

Common beginner mistakes

• Using inconsistent windows: Comparing monthly RPR to annual RPR will give misleading conclusions.
• Counting transactions instead of unique customers: Counting orders instead of customers inflates the numerator and obscures true repeat behavior.
• Failing to segment: Aggregated RPR hides differences between channels or products. High-performing segments can mask underperforming ones.

Practical examples

E-commerce: A DTC brand selling skincare might track 90-day RPR for consumables like moisturizers and 365-day RPR for anti-aging serums. Food & beverage: A subscription coffee company may look at 30- and 90-day RPR to evaluate trial-to-subscription conversion. B2B: A hardware supplier tracks RPR by account to understand repeat procurement cycles.

How to improve RPR

• Improve product fit and quality: Deliver a product worth repurchasing.
• Use targeted retention campaigns: Post-purchase emails, replenishment reminders, and loyalty programs encourage second purchases.
• Optimize pricing and bundles: Offer incentives for returning customers without eroding margin.
• Enhance CX and fulfillment: Fast, reliable delivery and excellent support reduce friction to repurchase.

Wrap-up

Repeat Purchase Rate is a clear, interpretable metric that tells you how many customers return to buy again. For beginners, it’s a powerful starting point to understand retention, prioritize customer experience improvements, and guide acquisition spend. Define it clearly, segment it thoughtfully, and use it alongside CLV and frequency metrics for the best insights.