A good returning customer rate is the percentage of customers who make a second purchase from your shop within a certain period of time.
A good returning customer rate for Shopify stores is 20-40%. This means that for every 100 customers that visit your store, 20-40 of them will make a purchase.
There are many factors that can affect your returning customer rate, including the products you sell, the design of your store, and the marketing strategies you use. However, there are a few things you can do to increase your chances of getting more customers to return and make a purchase.
Some of the best ways to increase your returning customer rate include offering free shipping, providing discounts on future purchases, and creating an engaging brand experience.
Repeat Customer Rate Shopify
If you’re looking to increase your repeat customer rate, Shopify is a great platform to use. With Shopify, you can easily track your customers and their purchase history, which makes it easy to send them targeted promotions and reminders. Additionally, Shopify’s built-in abandoned cart recovery feature can help you recover lost sales and boost your repeat customer rate.

As an ecommerce business, one of the most important metrics you can track is your repeat customer rate. This metric tells you how many of your customers come back and make additional purchases from your store. It’s a good indicator of customer satisfaction and can be a useful predictor of future sales growth.
There are a number of ways to increase your repeat customer rate.
- First, make sure you’re providing an excellent customer experience at every touchpoint. This includes everything from the quality of your products to the speed and convenience of your shipping
- Secondly, offer loyalty programs and discounts to encourage customers to keep coming back.
- Finally, stay in touch with your customers after they make a purchase and keep them updated on new products and special offers.
First-Time Vs Returning Customer Sales Shopify
When you’re running a business, it’s important to think about your customer base and what motivates them to make a purchase. Do you want to focus on first-time customers and offer them a discount or sale to get them in the door? Or do you want to focus on returning customers and give them loyalty rewards?
There are pros and cons to both approaches. First-time customers are great because they bring new business into your shop. But returning customers are essential for long-term growth.
They’re more likely to be loyal and spread the word about your business. So, which should you focus on? It really depends on your business goals.
If you’re just starting out, it might make sense to focus on first-time customers. You can use discounts and sales as an incentive to get people in the door. Once you’ve built up a solid customer base, then you can start thinking about loyalty programs for returning customers.
Both first-time and returning customers are important for businesses. It’s up to you to decide which group you want to focus on based on your goals.
Customer Retention Rate
As the name suggests, the customer retention rate is the percentage of customers who continue to use a company’s products or services after their initial purchase.
In other words, it measures how well a company keeps its customers over time. There are many ways to calculate customer retention rate, but the most common formula is:
Customer Retention Rate = ((E-N)/S)*100 where: E = number of customers at the end of a period N = number of new customers during that period S = number of customers at the start of that period.
For example, if a company has 100 customers at the beginning of a year and 10 new customers during that year, its customer retention rate would be 90% ((110-10)/100)*100).
A high customer retention rate is important for any business because it costs far less to keep existing customers than to acquire new ones. Additionally, satisfied repeat customers are more likely to refer friends and family members to your business, which can help you attract even more new business.
Customer Retention Rate Formula
What is the customer retention rate?
Customer retention rate (CRR) is a metric that measures the percentage of customers who continue to do business with a company over a given period of time. It’s a key indicator of a company’s health and can be used to track customer satisfaction, loyalty, and overall engagement.
How is the customer retention rate calculated?
The formula for calculating CRR is simple: [Number of customers at the end of the period – Number of new customers during the period] / Number of customers at the beginning of the period = Customer Retention Rate
For example, if a company has 100 customers at the start of a year and 10 new customers during that year, its customer retention rate would be 90% ((100-10)/100).
Why is customer retention rate important?
Customer retention rates are important because they indicate whether or not your current crop of customers is happy with your product or service.
A high CRR means that you’re successfully keeping your existing base happy, which bodes well for future growth. Additionally, it costs five times as much to acquire a new customer than it does to keep an existing one, so retaining even just a few extra percentage points can have a major impact on your bottom line.
What is a Good Returning Customer Rate?
A good returning customer rate is typically considered to be anywhere from 20-40%. This means that out of every 10 customers, 4-8 of them will return to do business with you again. Of course, the ideal situation is to have all 10 customers return, but that’s not always realistic.
There are a number of things you can do to try and increase your returning customer rate.
First, focus on providing excellent customer service. If your customers have a positive experience with your business, they’re more likely to come back.
Secondly, offer incentives for returning customers. This could be anything from discounts to loyalty programs. Finally, make it easy for customers to do business with you again.
What is the Average Return Customer Rate Ecommerce?
It’s hard to say what the average return customer rate is for ecommerce as a whole because it varies so much from one business to the next. However, we can take a look at some data from specific businesses to get an idea of what the range might be. One study found that the average return customer rate for online retailers was 2.4%.
Another study found that 18% of ecommerce customers are return customers. And yet another study found that the repeat purchase rate for ecommerce businesses was 26%. So, as you can see, there is quite a range when it comes to this metric.
It really depends on the type of business you have, your products/services, your marketing strategy, etc. That being said, if you have a strong retention strategy in place, you should be able to keep your return customer rate relatively high.
How Do I Increase Returning Customer Rate on Shopify?
There are a few key things you can do to increase your returning customer rate on Shopify. First, make sure you’re providing an excellent level of customer service. This includes responding quickly to questions and concerns, offering helpful and friendly support, and generally making the shopping experience as positive as possible.

Second, offer incentives for customers to come back and shop with you again. This could include discounts, coupons, or loyalty programs. Make it easy for customers to take advantage of these offers by prominently displaying them on your website and in your email communications.
Finally, keep your inventory fresh and up-to-date. Customers will be more likely to return if they know they’ll find new products and styles each time they visit your store. Pay attention to trends in your industry so you can always offer the latest and greatest items to your shoppers.
How Much of Your Profit on Average Comes from Returning Customers?
The average business brings in about 20% of its total revenue from returning customers. For small businesses, this number can be even higher. The reason is that it costs less to keep a customer than it does to attract a new one.
It’s also easier to upsell and cross-sell to people who are already familiar with your product or service. There are a few things you can do to increase the percentage of revenue that comes from return customers. First, focus on providing an exceptional customer experience.
This includes everything from delivering on your promises to going above and beyond what’s expected. Second, make it easy for people to do business with you. This means having a user-friendly website, clear and concise communication, and a streamlined process for ordering and delivery.
Finally, stay in touch with your customers after they make a purchase. Send them follow-up emails, offer loyalty rewards, and stay top of mind so they think of you when they need something you sell.
Conclusion
A good returning customer rate is a key metric for any ecommerce business. It’s a measure of how often your customers come back to make another purchase from you. A high returning customer rate means that your customers are happy with their purchases and are coming back to buy more.
A low returning customer rate could mean that your products are not meeting customer expectations, or that your prices are too high. either way, it’s important to keep an eye on this number so you can make changes to improve it.