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Repeat customers: Definition, Rates & Strategies| Keep Your Customers Coming Back - Motherapp

Repeat customers: Definition, Rates & Strategies| Keep Your Customers Coming Back


Keep Your Customers Coming Back – Repeat customers Definition, Rates & Strategies


In today’s highly competitive market environment, attracting and retaining customers has become the key to business success.

Repeat customers, or returning clients, not only provide businesses with stable revenue but also become loyal advocates for the brand, bringing long-term value to the company. This article will delve into repeat customers, including their definition, importance, and contribution to businesses, as well as a series of actionable strategies to help companies increase their customer retention rate and achieve sustainable growth.



What are Repeat Customers?

Repeat customers refer to those who repeatedly purchase or use a company’s products or services. They regularly shop with your brand, cultivating a certain level of customer loyalty and habitually spending on your products or services. They not only have a high level of trust in the company but also frequently return to make purchases. Repeat customers typically exhibit the following characteristics:

High Loyalty

Repeat customers usually have a very high level of loyalty to the brand. They are more inclined to choose familiar and trusted brands rather than easily trying new ones.

High Purchase Frequency

Compared to new customers, repeat customers have a higher purchase frequency. They have a certain understanding and trust in the brand’s products and services, making them more willing to make frequent purchases. This not only increases sales but also helps the company better predict and plan future business development through stable cash flow.

Higher Customer Lifetime Value (CLV)

Due to their repeat purchasing behavior, repeat customers contribute significantly more to the company. Their higher Customer Lifetime Value (CLV) indicates that they generate more revenue for the company over the entire customer lifecycle. This higher CLV is crucial to the company’s long-term profitability because the cost of maintaining repeat customers is usually lower than the cost of acquiring new ones.


Differences Between Existing Customers, Repeat Customers, and Loyal Customers

Let’s first understand the differences between existing customers, repeat customers, and loyal customers. These distinctions help businesses develop more effective strategies for different types of customers, thereby improving overall performance and brand loyalty.

Existing Customers

Existing customers are those who have purchased a product or service once or multiple times. They have some awareness of the brand but have not yet developed a stable habit of repeat purchases. Their buying behavior may be driven by promotions or specific needs, making it relatively unstable.

Repeat Customers/ Recurring Customers

Repeat customers are those who have purchased the company’s products or services multiple times. They have moved beyond single purchases and have started to form purchasing habits. These customers have a certain level of trust in the product quality and service but may not have a deep emotional connection to the brand. Their buying behavior is primarily based on practical needs and satisfaction.

Loyal Customers

Loyal customers not only make multiple purchases but also have a deep emotional connection to the brand. They actively recommend the brand and will choose it even when faced with competitive products. Loyal customers are advocates and promoters of the brand. Their loyalty and positive recommendations can help businesses attract more new customers and bring in stable revenue.

Existing Customers, Repeat Customers, and Loyal Customers

To create more effective strategies for different customer types, businesses should first enhance the initial purchase experience, then reinforce repeat purchasing habits, and finally build deep brand loyalty. At each stage, businesses must take appropriate measures to maximize customer value, ultimately leading to sustained revenue growth and long-term brand success.


Why is returning business important?

The importance of repeat customers to a business can’t be ignored, and it shows up in several key ways:

Cheaper to Keep Than to Get New Ones

Keeping existing customers is way cheaper than getting new ones—about five times cheaper, in fact. This means businesses save a lot on marketing and effort by focusing on retention. Plus, happy existing customers can bring in new ones through word-of-mouth, which is often more convincing than ads because people trust their friends and family more.

Free Promotion Through Word-of-Mouth

Loyal customers who regularly buy from you often become your best promoters. They’ll talk up your products to friends, family, and on social media, spreading the word for free. They also leave positive reviews and give useful feedback. This kind of promotion boosts your brand’s reputation and attracts new customers.

More Willing to Try New Products

When you launch new products, repeat customers are a great audience. They trust your brand and are more likely to try new things, especially if they’re related to what they already like. This can lead to more sales and valuable feedback to improve new products.

Higher Customer Lifetime Value (CLV)

Repeat customers usually spend more over time, giving them a higher CLV than one-time buyers. They’ll keep buying your products and services, and they’re often the first to try new offerings. This steady revenue stream from loyal customers supports long-term profitability and reduces the need to constantly find new customers.


KPI for Repeat Customer: Repeat Customer Rate


Customer data helps businesses identify repeat customers. The Repeat Customer Rate (RCR) is a key metric used to assess the success of a company’s repeat customer strategy. This metric not only reflects customer satisfaction with the company’s products and services but also shows how well the company is doing in retaining customers and building loyalty.

How to Calculate Repeat Customer Rate

Repeat Customer Rate 回客率

This metric helps businesses understand how many customers come back for a second or multiple purchases after their initial one. A high RCR indicates that customers are satisfied with the products or services and are willing to choose the brand again.


Some Metrics to Measure the Success of Repeat Customer Strategies

  • Repeat Customer Rate (RCR)
  • Churn Rate: This measures the percentage of customers lost over a specific period. A lower churn rate means the business is better at retaining its customers.
  • Customer Lifetime Value (CLV): CLV measures the total value a customer brings to the company over their entire purchasing cycle. A high CLV is often linked to a high RCR since repeat customers generally contribute more to overall revenue.
  • Customer Satisfaction Surveys: Regularly conducting these surveys helps gather specific feedback and suggestions from customers about your products and services. This information is crucial for improving strategies aimed at retaining repeat customers.


Grow Revenues with Recurring Business

The significant contribution of repeat customers to business revenue growth is mainly reflected in the following aspects:

Higher Purchase Frequency

Repeat customers tend to buy more frequently, meaning they return to the brand multiple times in a shorter period. This not only increases sales opportunities but also boosts overall sales.

Higher Average Order Value

Repeat customers have greater trust and recognition of the brand, and they typically purchase more products or choose higher-priced items, thereby increasing the average order value. These purchasing behaviors directly contribute to revenue growth.

Stable Revenue Source

Repeat customers provide a stable source of revenue. Their loyalty and consistent buying behavior effectively reduce revenue volatility. Compared to new customers, repeat customers have higher purchase frequency and spend more. This stability allows businesses to better predict future financial performance, allocate resources effectively, and plan long-term strategies.

Higher Customer Lifetime Value (CLV)

Due to their ongoing purchases and higher buying frequency, repeat customers typically contribute a higher CLV. This has a significant impact on the company’s long-term profitability, as high CLV customers provide sustained revenue and exhibit higher loyalty and willingness to recommend the brand.


Strategies to Nurture Repeat Business

To boost customer retention, businesses should adopt practical strategies to cultivate and maintain repeat customers. Here are some straightforward strategies:

Start a Loyalty Program

Create an engaging membership program with perks like a points system, member-only discounts, and special events. Offer exclusive deals and rewards for members, letting them earn points to redeem for goodies, stay updated with the latest news, and join exclusive events. This can significantly boost interactions with loyal customers and encourage repeat business.


Offer Personalized Customer Service and Memorable Experiences

Use customer purchase history and preferences to provide personalized recommendations and services. Automate personalized marketing to create memorable experiences and strengthen brand recall. For example, send targeted emails to different customer segments with offers and content that match their interests and needs.


Act on Customer Feedback

Gather feedback through email surveys, SMS, social media chats, and customer service channels. Show customers you care about their opinions, making them feel valued. Regularly seek feedback to give customers a chance to share their experiences, and thank them for their input, even if it’s constructive criticism.

Quickly act on feedback and let customers know what changes you’ve made to build trust. Use the Voice of the Customer (VoC) to collect insights and demonstrate that you are listening and care about their experience.


Build a Strong Brand Image

Build an emotional connection by sharing your brand story and values, enhancing customer loyalty. Consumers want brands to take a stand on issues they care about. According to Edelman, two-thirds of consumers buy based on their beliefs. Show your values through actions like donating to causes that align with your mission, encouraging employee volunteering, and updating policies to reflect your values.


Repeat customers are key to a business’s success. They not only bring steady income but also boost brand awareness and reputation through word of mouth. By implementing effective strategies like loyalty programs, personalized services, collecting customer feedback, and building a strong brand image, businesses can improve their return customer rates and achieve sustainable growth.

Companies should continuously monitor and analyze repeat customers’ behavior data, adjusting strategies based on market changes and customer needs to keep attracting and retaining them long-term. Managing repeat customers isn’t just the marketing department’s job; it requires a coordinated effort across the entire company. Improving product quality, customer service, and brand image are all crucial for increasing customer satisfaction and loyalty.

Repeat customers are among the most valuable assets for a business. Their ongoing support and trust provide stable revenue and long-term success. Therefore, businesses should highly value cultivating and maintaining repeat customers, continuously innovating and optimizing services to meet their needs, and ultimately achieving a win-win situation.


If you are thinking about developing a new loyalty program for your brand, feel free to visit our website to learn more. Also, feel free to contact us for consultation and professional advice! 


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