Repeat Orders Rate tells you the # of orders that are repeat orders and dividing that by customers. It looks at orders compared to customers. 200% means that all the customers from that cohort ordered two repeat orders - a loyal customer base!
Formula = number of returning orders / size of the cohort
Indicates the weighted likelihood of customers coming back by a certain month
100% = doubled the number of orders, 200% = tripled, etc.
If you see beyond 100% that means that there were as many returning orders as there were customers. If there are 1400 customers in the December cohort and 1,482 orders by month 3, that means that the December cohort surpassed 100%. The number of orders surpassed the number of customers. You go beyond 100% because we are counting orders- cumulatively past the first one.
When you see orders within the first month, that means that there is a % of repeat orders happening very quickly after the first purchase (which is great!) When you see that you are getting close to 50% for some cohorts, that means that your customers are ordering a number of orders equivalent to half the cohort size. Some customers might buy a lot more orders than other customers and this metric helps give you a gauge of that.
It is interesting to see which cohort or which segment (product, discount code, location, etc.) triggers more orders from your customers. In some cases, some customers can be ordering so much more than other customers that they are increasing these stats, which is why it's helpful to look at Repurchase Rate.
Not all customers might come back, but some will be extremely loyal and continue to make multiple purchases and that’s why your LTV is high even if you have a low repurchase rate.
While the repurchase rate is a good way to see if a lot of customers come back, the repeat order rate is a way to see if the cohorts came back. A low % of repurchase rate for a high repeat order rate will mean the cohort contains a small group of great customers and a large group of one-time customers.
Updated 10 months ago