Monthly Repurchase Rate Analysis

Expected Effect

Monthly repurchase rate = Number of people who made two or more purchases in a month / Total number of people who made purchases in that month

For example, if 100 users made purchases in a month, and 20 of them made two or more purchases, the monthly repurchase rate would be 20%.

Similarly, the calculation period can be adjusted to determine the quarterly repurchase rate and annual repurchase rate.

Application Scenario

You can observe client loyalty through the repurchase rate.

Increasing the repurchase rate can enhance the frequency of user purchases. For sustained business growth, in addition to continuously acquiring new customers, the repurchase behavior of existing users is particularly important.

This document takes the repurchase rate of a supermarket as an example.

You can download the sample data: Supermarket Sales Data.xlsx.

Data Preparation

Create a subject named Monthly Repurchase Rate Analysis in My Analysis and upload the downloaded sample data, as shown in the following figure.

Component Creation

In this example, the formula DEF_ADD (specified dimensions and dimensions in the analysis area) is used to calculate the aggregation indicator values. Therefore, before performing the calculation, you need to drag the field Order Date into the analysis area.

Click the  icon next to the field Order Date and select Year-Month from the drop-down list to group the data by month.

Calculating the Purchase Count of Each Client in a Month

On the component page, create a calculation field named Purchase Count in a Month, as shown in the following figure.

Counting the Number of People Who Made a Purchase in a Month

On the component page, create a calculation field named Number of People Who Made a Purchase in a Month, as shown in the following figure.

Counting the Number of People Who Made Purchases in a Month

On the component page, create a calculation field named Number of People Who Made Purchases in a Month, as shown in the following figure.

Calculating the Monthly Repurchase Rate

On the component page, create a calculation field named Monthly Repurchase Rate, as shown in the following figure.

Component Editing

1. Drag the field Monthly Repurchase Rate into the analysis area.

Click the  icon next to the field Monthly Repurchase Rate and choose Summary Mode > Average from the drop-down list. Re-click the  icon, select Value Format, and select Percentage.

With the operations above, you can obtain the monthly repurchase rate.

You can also use a line chart to display the trend of the monthly repurchase rate, as shown in the following figure.

Effect Display

For details, see section "Expected Effect."

The repurchase rate shows an overall upward trend, indicating that client loyalty to the supermarket is increasing. This suggests that the marketing strategies employed during this period are a success.

You can observe the health of client loyalty by overlaying the repurchase rate and the total number of purchasing clients on a time trend graph. The ideal state is when the repurchase rate does not fluctuate with changes in the number of clients and generally maintains an upward trend. As the company grows, these loyal clients will consistently create long-term value.