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. With the integration of Google Ads, you now have an additional avenue to enhance repurchase rates.

Given the following example:

We notice that 4,539 Customers made their first transaction in Oct 2022. Of those customers, 14.2% made a second order again within 30 days from their first order and 26.7% 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 RR suggests a strong Product/Market fit and provides insights into how much to invest in customer acquisition. This is where the integrated Google Ads metrics come into play:

• Clicks: The number of times users interact with your ad.
• Impressions: The instances your ad is displayed on the Google Network.
• Clickthrough Rate (CTR): The efficiency of your ad, determined by dividing clicks by impressions. For instance, 5 out of 100 impressions results in a 5% CTR.
• Cost: The combined expenditure of your Cost-Per-Click (CPC) and Cost-Per-Thousand Impressions (CPM) across various ad campaigns.

These metrics offer a comprehensive view of your marketing efficacy, guiding your journey to heightened profitability.