Returning Customer Rate is the percentage of customers who have made more than one purchase over a specific time period. It reflects how successful your business is at retaining customers and encouraging repeat purchases.
Returning Customer Rate is calculated by dividing the number of returning customers by the total number of customers during a set time period, then multiplying by 100 to express it as a percentage.
If you had 1,200 customers in a month, and 300 of them had purchased before, your Returning Customer Rate would be 25%.
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A good Returning Customer Rate varies by industry, but for eCommerce, a rate of 20–40% is often strong. The higher your Returning Customer Rate, the more efficiently you’re monetizing your customer base.
A low Returning Customer Rate (below 15%) may signal poor customer experience, lack of follow-up, or an underdeveloped loyalty strategy – leading to missed revenue opportunities.
Send personalized emails with product recommendations, offers, or helpful content to keep customers engaged after their first purchase.
Give customers incentives to come back – like points, discounts, or early access – based on their repeat activity.
Fast, helpful service and a smooth delivery experience increase the likelihood of a customer returning to buy again.
