Overview
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.
Example
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.
Formula | Description | Reference |
COUNTD_AGG(Order ID) | Performs a deduplicated count on the Order ID data. Since each client may purchase more than one item each time, the Order ID data may appear duplicated. | |
DEF_ADD(COUNTD_AGG(Order ID), Client Name) | Groups the data by Client Name and dimensions in the analysis area and calculates the purchase count of each client in a month. |
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.
Formula | Description | Reference |
COUNTD_AGG(Client Name) | Performs a deduplicated count on the Client Name data. | |
DEF_ADD(COUNTD_AGG(Client Name)) | Groups the data by the dimensions in the analysis area and calculates the number of deduplicated client names. |
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.
Formula | Description | Reference |
DEF_ADD(COUNTD_AGG(Client Name),[],Purchase Count in a Month>=2) | Groups the data by the dimensions in the analysis area and filters the Purchase Count in a Month data with a value of more than or equal to 2and calculates the number of deduplicated client names. |
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."
Conclusion
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.