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The Reten Letter · Ideas

Repeat customer rate: the formula, and how to read yours

Essay · Issue 04

One number that tells you whether people come back. How to work it out from your bills.

By
Reten editorial
For
All businesses
Stage
Regular
Published
Read
1 min

The short answer

Repeat customer rate is the share of your customers who visited more than once in a period. Count customers with two or more visits, divide by everyone who visited, and multiply by 100. Track it month by month: the direction it moves matters more than any single number.

Key takeaways

  • Count customers, not bills: you need a phone number on each bill.
  • Compare yourself with your own last quarter, not another business.
  • A café and a salon have different normal rhythms.
  1. 01The formula
  2. 02A worked example
  3. 03Read it for your kind of business
  4. 04Count people, not bills

The formula

Pick a period, say the last 90 days. Count the customers who visited two or more times. Divide by everyone who visited at least once. Multiply by 100.

A worked example

Say 400 different customers visited in 90 days, and 120 of them came twice or more. 120 divided by 400 is 0.3, so 30 in every 100 of your customers came back.

Read it for your kind of business

A café expects people every week, a salon every month or two. Compare yourself with your own last quarter, not with someone else’s number.

Count people, not bills

You need to know who each bill belongs to. A phone number on the bill is enough. Without it, every visit looks like a new person.

Put it to work.

See who’s due for this one in your own Reten.

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Written by the Reten editorial team. General guidance, not legal advice: check consent and messaging rules for your business before you send.

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