What is a returning customer rate?
The returning customer rate is a measure of how many existing customers made two or more purchases within a given time frame. This includes first-time customers making their first purchase, then coming back to buy something else from your company soon after. This metric shows customer loyalty and the number of customers your business can convert into repeat customers who value your company or brand’s services because of its customer experience, incentives, new products, and pricing.
The higher number of returning customers you can bring to your site, the higher the customer lifetime value (clv) your customer will see. With a higher customer retention rate, you have a better chance of increasing profitability and seeing growth in your eCommerce business.