How is this “Returning Customer Rate” calculated on the shopify analytics frontend.
Can someone provide the formula for the same ?
The “Returning Customer Rate” in Shopify analytics represents the percentage of customers who have made more than one purchase on your store compared to the total number of customers. It provides insights into the loyalty and repeat purchase behavior of your customer base.
The formula to calculate the “Returning Customer Rate” is as follows:
Returning Customer Rate = (Number of returning customers / Total number of customers) * 100
To obtain this information from Shopify analytics, the platform tracks customer data and analyzes purchase history. It identifies customers who have made multiple purchases and calculates the returning customer rate based on that data.
Hi there, @arpit09tewari .
Great question, this is an important number to be aware of in your store. The formula we use for this figure is:Returning customer number / (Returning customer number + First-time customer number) to get the percentage rate.
Here’s an example:
In this case:
- Returning customer rate = Returning customer number / (Returning customer number + First-time customer number)
- Returning customer rate = 90 / (90+ 980) Returning customer rate = 90 / 1,070 Returning customer rate = 0.08411214953
- Returning customer rate = 8.41%
Are you hoping to work on increasing this figure in your store? If so - I can highly recommend this tutorial: Easy ways to increases your returning customer rate. I trust this helps, thanks!
would the returning customer number include recharge repurchases?