🔥 Tier 1 - Must KnowID: repeatPurchaseRate
Repeat Purchase Rate
% of customers who place 2 or more orders within a given time period
In Simple Words (Zero Jargon):
The percentage of buyers who liked your product enough to come back and buy a second or third time.
Official Mathematical Equation
Repeat Purchase Rate% = (Customers with 2+ Orders in Period ÷ Total Customers in Period) × 100
Why It Is Critical
Most Indian D2C brands lose money on a customer’s first order after factoring in CAC, COD rejection, and RTO courier costs. Repeat purchases (with zero ad cost) are where the brand actually makes profit.
Strategic Rules of Thumb & Execution Playbook
- A 25-30% repeat rate within 6 months is healthy for Indian D2C; consumable F&B and wellness brands aim for 40%+.
- Segment repeat rate by first-order discount depth - customers acquired on 50% coupons repeat far less than organic buyers.
'A brand that only measures new-customer CAC and never repeat purchase rate is optimizing for the most expensive, least loyal customer it will ever acquire - the first one.'
What You Get: The single clearest signal of product-market fit and post-purchase customer satisfaction, independent of ad quality.