Repeat rate

Why it matters

A high repeat rate is strong evidence of product-market fit for a transactional business, since customers are choosing to come back on their own rather than being locked into a subscription. It also reduces how dependent your growth is on constantly acquiring new customers, which directly improves unit economics.

How to calculate it

Pick a time window, for example six or twelve months, then divide the number of customers who placed two or more orders in that window by the total number of customers who placed at least one order. Keep the window consistent so you can compare across cohorts and periods.

Worked example

Out of 10,000 total customers in a period, 3,800 placed two or more orders. Repeat rate equals 3,800 divided by 10,000, which is 38%.

What's standard by category

General e-commerce typically sees 20% to 40% as normal, with 40% or higher considered strong. Marketplaces typically need 30% to 50% for healthy liquidity on both sides. Grocery and other frequently purchased consumables typically run much higher, often 50% to 70%, since the category itself drives more frequent repurchase.

Common mistakes

Not defining the time window clearly, which makes the number impossible to compare across reporting periods or against another company's stated repeat rate.

Mixing B2B and B2C customers together, or failing to cohort by acquisition channel, both of which can hide whether repeat behavior is improving or getting worse for newer customers specifically.

How to show it in your deck

On the traction slide, show repeat rate alongside cohort curves demonstrating improvement over time, for example: 38% repeat rate overall, with month-six cohorts reaching 52%.

Formulas

Related Terms