Repeat purchase rate

What repeat purchase rate is

Count the customers who bought in a period, then the ones among them who bought at least twice, and divide the second number by the first. If 400 people visited a café in March and 140 of them came more than once, the March rate is 140 / 400, or 35%. To count it at all you need to recognise a returning customer, which is what a loyalty card does: each scan ties a visit to a person.

How it works for a café, salon or restaurant

• A café checks it monthly, because most regulars come weekly or more often.
• A salon uses three months, which matches how often clients book a cut or a manicure.
• A restaurant looks at lunch and dinner guests separately, since the two groups return at different rhythms.

Businesses on Rewardly see 30% more repeat visits on average, and this rate is where that change shows up in your own numbers.

What to watch

Pick one period and stick to it, or the months will not compare. Count customers, not receipts, so a regular with ten visits counts once. And read the trend after a change, such as a new reward, rather than judging a single month.