Cohort repurchase rate
Repurchase rate (RR) is the percentage rate of a cohort having placed another order within 30/60/90/180/360 days from their first order.
Given the following example:
We notice that 1,288 Customers made their first transaction in May 2018. Of those customers, 20% made a second order again within 30 days from their first order and 28% made an order within 60 days.
A second or subsequent order is defined as any order placed any day after the previous order (this means that multiple orders placed on the same day will not count as repurchases).
Each period is a complete retrospective, meaning the data will only appear after 30 days have passed, no partial data will be shown.
The longer the interval, the higher the Repurchase rate will be. So, we always know that:
360 days RR > 180 days RR > 90 days RR > 60 days RR > 30 days RR
A high Repurchase rate can indicate good Product / Market fit, it can also help you estimate how much you should be spending to acquire new customers. This in turn helps you along your path to greater and greater profitability.