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GLOSSARY

Repeat rate

Repeat rate is the percentage of customers who make more than one purchase within a defined time period. It measures customer loyalty and product-market fit for transaction-based businesses. A high repeat rate indicates that customers find ongoing value, reduces reliance on new customer acquisition, and improves lifetime value. It is especially critical for marketplaces and e-commerce where subscription models do not apply.

Why it matters

High repeat rate indicates product-market fit and reduces reliance on new customer acquisition.

Benchmarks

E-commerce: 20-40% is typical; 40%+ is strong. Marketplaces: 30-50% for healthy liquidity.

Worked example

Total customers 10,000; Customers with 2+ orders 3,800 → Repeat rate = 38%.

Common pitfalls

Not defining time window; mixing B2B and B2C; not cohorting by acquisition channel.

How to show in your deck

Traction slide: repeat rate with cohort curves showing improvement.

Deck snippet

38% repeat rate; M6 cohorts at 52%.

Formulas

Repeat rate
(Customers with 2+ purchases) / (Total customers) x 100%

Frequently asked questions

Related terms

Cohort retentionLTV

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