What is a good returning customer rate? (2024)

What is a good returning customer rate?

Although benchmarks vary from company to company, most ecommerce businesses have 25-30% percent returning customers. This is backed up by Alex Schultz, VP of Growth at Facebook who says, “If you can get 20-30% of customers coming back every month and making a purchase from your store, you should do pretty well”.

What is a good return customer rate Shopify?

Alex Schultz, former vice president of growth at Facebook says “If you can get 20–30% of your customers coming back every month and making a purchase from you, then you should do pretty well.” That number lines up with Shopify's 27% average repeat purchase rate for first time customers.

What is a good repeat rate?

Repeat Purchase Rate is the percentage of customers who come back to place another order. 100% means every customer comes back again. 0% means that no one comes back. According to industry figures, an average store's repeat purchase rate should be around 27% - 32%.

What is a good customer retention rate?

Low retention is a red flag for any business, as it signals poor customer satisfaction. A good rate is as close to 100 percent as you can make it.

How much of your profit on average comes from returning customers?

So it's smart to try and increase both retention rate and the spending of returning customers. Go the extra mile for those customers to win their loyalty so they buy as much as possible. Our recent research found an average revenue from returning customers of 60%.

How do you increase return on customer rate?

What is a good conversion rate on Shopify?

If you want a good conversion rate on your Shopify store, your rate should be above 3.7%. Anything above 3.7 percent puts you in the top 20% of Shopify stores for conversion rate, and anything above 5.2 percent can put you in the top 10%.

What is the term for returning customer?

Repeat customers are people who buy from you time and time again and would be considered loyal customers.

How do you calculate repeat customer rate?

Your Repeat Customer Rate is calculated by dividing your Repeat Customers by your Total Paying Customers. Every store has two types of customers: New Customers and Repeat Customers. Knowing your Repeat Customer Rate will show you what percentage of customers are coming back to your store to shop again.

What percentage of sales come from existing customers?

The probability of selling to an existing customer is 60-70 percent. The probability of selling to a new prospect is 5-20 percent. 80 percent of your future profits will come from just 20 percent of your existing customers. 65 percent of a company's business comes from existing customers.

How do I increase returning customer rate on Shopify?

What is the average eCommerce return rate?

The average ecommerce return rates hovers around 20-30% There are predictable and common reasons for returns, such as: sizing issues, wrong gifts, purchase of multiple products with an intent to return some/all, or a failure to set correct customer expectations.

What is the return rate for online shopping?

The average rate of returns for online purchases was 20.8% — an increase from 18.1% last year, NRF found.

How much do returns cost eCommerce?

Collectively, consumers returned products worth $428 billion in 2020—just over 10% of total retail sales. The National Retail Federation estimates the cost of returns amounts to $101 billion. It paints a bleak portrait, especially for online retailers.