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Repeat Purchase Rate

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# 1
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Im trying to find out my repeat purchase rate.  I have created a segment with unique purchases > 1 which I called "Repeat Purchases"  When looking at my numbers for the repeat purchase rate they seem to be way to high.  What I am doing is  the following:

 

I turn on my"Repeat Purchases Segment" as well as the All Users Segment

I then go to E-Commerce overview and take the total number of transactions from the "Repeat Purchases Segment" and divide it by the total number of transactions from the all users segment.

 

Is that correct?  The numbers I am getting seem way too high.

 

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Accepted by topic author Jason M
March 2016

Re: Repeat Purchase Rate

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# 4
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After talking with another expert I have come to the conclusion the best way to define "Repeat Purchase Rate" is: If a someone comes onto your site and makes a purchase, what is the percentage of people who will come back and at least make a second purchase.

Hence the correct equation for "Repeat Purchase Rate" is:
"Calculated as purchases from repeat customer divided by all purchases on the site for a given date range."
In Google Analytics: Transactions from "unique purchasers" segments divided by the total number of transactions.

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Re: Repeat Purchase Rate

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# 2
Top Contributor
What if you look at Users metric? So users that purchased over 1 times / total users?
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Re: Repeat Purchase Rate

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# 3
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That then gives me the exact opposite end of the spectrum. Im trying to understand what is the correct equation for the definition of "Repeat Purchase Rate"

Ive seen the following definitions:

1.) "Calculated as purchases from repeat customer divided by all purchases on the site for a given date range."
- My take on it relating to Google Analytics terminology: Transactions from the "unique purchasers" segments divided by the total number of transactions.

2.) "Customers that have purchased x times/ Total customers"
- My take on it relating to Google Analytics terminology: Number of users from the "unique purchasers" segments divided by total users.


Marked as Best Answer.
Solution
Accepted by topic author Jason M
March 2016

Re: Repeat Purchase Rate

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# 4
Visitor ✭ ✭ ✭
After talking with another expert I have come to the conclusion the best way to define "Repeat Purchase Rate" is: If a someone comes onto your site and makes a purchase, what is the percentage of people who will come back and at least make a second purchase.

Hence the correct equation for "Repeat Purchase Rate" is:
"Calculated as purchases from repeat customer divided by all purchases on the site for a given date range."
In Google Analytics: Transactions from "unique purchasers" segments divided by the total number of transactions.

Repeat Purchase Rate

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# 5
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