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What is a 'good' customer retention rate?
What is a 'good' customer retention rate?
Rael Cline avatar
Written by Rael Cline
Updated over 2 years ago

Although this heavily depends which category your products are in, for categories like food and drink, pets, supplements, household cleaning, we generally see a 15%-20% customer retention rate from the first to the second purchase.

We would also expect a decent increase from the second to the third purchase as your customers become more loyal. This would be in the 30% - 35% range.

In the cohort analysis table, we would expect most brands to have a cohort retention rate (i.e. the percentage of customers in the cohort who bought at least twice) between 20% - 30%.

Bear in mind that newer cohorts are expected to have lower retention rates as they have not had as much time as older cohorts to purchase again. Generally, we expect cohort retention numbers to stabilize after 90 days (i.e. 3 months after their first purchase) as most products are bought again within three months.

In the chart above, the brand had 378,740 customers who made 1 order and 74,743, or 20%, made a second order. Out of the 74,743 who made two orders, 33,143, 44%, made 3 orders, a more than doubling of the retention rate from the first to the second purchase.

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