# What is Repeat Purchase Rate?

What is Repeat Purchase Rate? The percentage of customers who made at least a second purchase. A gauge of product-market fit and experience quality.

## How it works in practice

Repeat purchase rate is the business's litmus test: do people buy again? If so, LTV rises and effective CAC falls. If not, there's a product or experience problem.

## Related metrics

- LTV — repeat rate is its foundation
- Churn Rate — low repeat rate means high churn
- Win-Back Campaign — aims to bring customers back
- Loyalty Program — a tool to increase it

## Common misconception

'A low repeat rate is a marketing problem.' Sometimes the product is inherently one-time (a mattress, a wedding dress). Sometimes the issue is the post-purchase experience. Diagnose before concluding.

## How to fix it

Low repeat rate? (1) NPS — are customers satisfied? (2) post-purchase email flow — is there engagement? (3) does the product create a reason to return? (4) a simple loyalty program.

## Real-world example

An olive oil store: repeat rate 18%. Customers were satisfied (NPS 68) but forgot to reorder. A subscription plus a 45-day reminder email raised repeat rate to 41%.

## Where to start

Measure repeat rate at 90 and 180 days. Benchmark: 90 days → 20%+, 180 days → 35%+. Below that, launch an immediate win-back and audit the post-purchase experience.

---

Category: Finance · From the [Jimmy OS KPI Glossary](https://jimmy-os.com/glossary/kpi.md) · Source page: https://jimmy-os.com/glossary/kpi/repeat-purchase-rate