First, the specific algorithm
1, the number of people who buy again: repurchase rate = the number of people who buy more than 1 per unit time/all the people who buy. The number of times that all customers who have purchased products repeatedly purchase products with each person as an independent unit. For example, 10 customers have purchased products, and 5 customers have purchased them repeatedly, so the repeat purchase rate is 50%.
2. Repurchase times: Repurchase rate = total number of repurchases per unit time/number of all buyers. The number of times that all customers who have purchased products repeatedly purchase products with each person as an independent unit. For example, 10 customers have purchased products, and 5 customers have purchased them repeatedly, so the repeat purchase rate is 50%;
Second, introduce the repo rate.
Repurchase rate is the abbreviation of "repeat purchase rate", which refers to the ratio calculated after customers buy the same goods or services in a store for many times. Repurchase rate can reflect customers' loyalty to products or services. The higher the repurchase rate, the higher the customer loyalty, and vice versa.
Importance of repurchase rate
Measure the popularity of products
Repurchase rate can reflect the popularity of a product or service. The high repurchase rate means that the more loyal customers an enterprise, a product and a brand have, the more energy and resources the enterprise needs to invest to attract and guide users to repurchase. On the other hand, the low repurchase rate means that there are not many loyal customers of enterprise products, and resources and energy need to be used to improve customer conversion rate.
Guide the business strategy of enterprises
Through the repurchase rate, enterprises can understand the popularity of their products or services in the market and the loyalty of customers, thus guiding the operation strategy of enterprises. If the repurchase rate is high, enterprises can continue to maintain and optimize existing products or services, and at the same time put more energy and resources into attracting and guiding users to repurchase.
Forecast market trends
By observing the changing trend of repurchase rate, enterprises can predict the market trend. If the repurchase rate is on the rise, it shows that products or services are more and more popular with customers, and the position of enterprises in the market is gradually stable. On the other hand, if the repurchase rate shows a downward trend, it means that there may be some problems in products or services or the market competition is intensifying, and enterprises need to be vigilant and take corresponding measures.