Purchase Frequency

Purchase frequency is a key indicator of customer loyalty that helps predict potential revenue and future project growth. Learn about this important metric—how to calculate and track it, what factors influence purchase frequency, and more.

What Is Purchase Frequency?

Purchase frequency shows how often, on average, a customer purchases in a given period. For example, your purchase frequency would be five if you had 20,000 orders from 4,000 customers last month. How often people buy from you again reflects the trust your customers have in your brand.

Why Purchase Frequency Matters

Shows How Loyal Your Customers Are

A high purchase frequency indicates your customers' loyalty. This is important, among other things, because acquiring a new customer usually costs more than retaining an existing one. If you see that customers return repeatedly, they trust you.

Affects Customer Lifetime Value

Customer lifetime value (CLV) measures the total revenue generated over a customer's life. When people shop more often, they naturally contribute more to your sales. By focusing on purchase frequency, you can boost CLV, making each customer more profitable in the long run.

Predicts Future Sales

If customers buy from you regularly, you have a good predictor of future revenue. A stable purchase frequency lets you plan your marketing campaigns and budget more confidently. If you see a drop in purchase frequency, this is a signal that you need to find out the reasons for it quickly.

Reflects Customer Engagement

Purchase frequency is closely related to engagement with your brand.

Users may subscribe to newsletters, follow you on social media, or participate in loyalty programs. By tracking purchase frequency, you can see how effective your customer acquisition efforts are and determine which strategies keep them engaged.

Shapes Retention Strategies

Determining purchase frequency is necessary to optimize the customer retention strategy. You can counteract the decline by using loyalty rewards and marketing emails with special offers. Either way, tracking purchase frequency gives you a clearer direction for your retention plans.

How to Calculate Purchase Frequency

The formula for purchase frequency is:

Purchase Frequency = Total Number of Orders in a Given Period ÷ Total Number of Unique Customers in the Same Period

Example:

• Total Orders (Quarter): 20,000
  
  
• Unique Customers (Quarter): 4,000

So,

Purchase Frequency = 20,000 ÷ 4,000 = 5

This means that each customer made an average of five purchases over a period. Monitoring this metric over time lets you see if you’re attracting more repeat sales or need to ramp up efforts to increase repeat purchases.

Purchase Frequency Benchmarks

Benchmarks vary among industries, price points, and customer demographics. Still, having a rough idea of what’s “normal” can give you context for your performance.

E-commerce Benchmarks

E-commerce purchase frequency is typically between 2 and 5 retail purchases per year. This figure can be higher for clothing, mainly if marketing techniques such as personalized communications and exclusive discounts are used. On the other hand, electronics stores might have a lower frequency because big-ticket items aren’t bought as often.

Subscription Service Benchmarks

Subscription businesses (like mobile apps or streaming platforms) naturally see a higher frequency of purchases because customers are charged regularly. However, this does not guarantee loyalty; customers will only pay if they believe your product is worth the recurring cost. In that sense, purchase frequency is directly tied to how effectively you meet (or exceed) customer expectations.

Factors Affecting Purchase Frequency

Product Type and Price

More expensive items tend to be purchased less frequently, while everyday items (such as food or personal care products) are purchased more frequently. Understand your product category so you can set realistic goals for your purchase rate.

Seasonality and Demand Cycles

Most markets have seasonal peaks—think holiday shopping for retailers, summer breaks for travel, or back-to-school sales. During these peaks, repeat purchases increase sharply. Tracking these trends will help you stock up and plan your marketing campaigns to maximize the seasonal peak.

Promotions and Special Deals

Sales and promotions can temporarily increase purchase frequency. However, discounts should not be overused, as they can train customers to wait for the next great deal without purchasing. The strategy must be balanced to encourage repeat purchases without undermining brand equity.

Customer Satisfaction and Brand Image

If your brand consistently delivers on its promises, it has a good reputation. This means people are more likely to return to buy. However, if a company skimps on product quality or doesn’t focus on customer support, it will negatively impact purchase frequency. Monitoring feedback channels can help you spot warning signs before they turn from repeat customers to lapsed customers.

Strategies for Increasing Purchase Frequency

Launch a Loyalty Program

Rewarding loyal customers is a powerful way to increase repeat purchases. Offer bonus points, birthday gifts, or exclusive offers to motivate buying more often.

Use Personalized Recommendations

Personalization plays a huge role in sales. Show customers products that match their previous purchases or browsing history, encouraging repeat purchases. Offer related products or new products that match the customer's interests.

Send Re-engagement Emails

A successful remarketing campaign can bring back inactive customers. Offer something that sparks special interest: a preview of a new collection, exclusive discounts, or an invitation to an event. Even a friendly “We miss you!” message with a little incentive can push the customer to make new purchases.

Add Subscription Options

Selling consumable or regularly replaced products? Let shoppers subscribe and receive automatic shipments. It eliminates the hassle of re-ordering and secures a predictable purchase interval. Subscriptions can naturally lift purchase frequency because buyers don’t have to remember to reorder.

Purchase Frequency vs. Recency

Purchase frequency is all about how often someone buys. Purchase recency zeroes in on how long it’s been since a shopper’s last purchase. When used together, these metrics paint a detailed picture of purchase behavior.

• High Frequency + High Recency: These are your power shoppers—buyers who spend often and recently bought something.
• Low Frequency + High Recency: They’ve bought from you recently, but not that many times in total. They might be open to purchasing more if you give them good reasons.
• High Frequency + Low Recency: These customers used to buy from you frequently, but it’s been a while since their last purchase. A targeted re-engagement campaign might win them back.

You can better tailor your marketing strategies to each segment by tracking average order value and customer lifetime value.

How to Track Purchase Frequency

To measure purchase frequency effectively:

1. Centralize Your Data: Integrate online and offline sales into one system. You need a clear view of total orders and unique customers.

2. Pick a Time Frame: Decide whether you’re evaluating monthly, quarterly, or yearly frequency. Align the period with your business cycle.

3. Use Dashboards or CRM Tools: Automate your reporting so you can see trends in near-real time. Many analytics platforms allow you to track purchase frequency, purchase recency, and customer lifetime value.

4. Segment Your Audience: Identify customer groups based on purchase frequency to personalize marketing campaigns based on this metric.

By doing these actions, you will get a clear picture of how often you are getting repeat purchases and be able to influence this metric.

Final Thoughts

The best way to improve purchase frequency is to give people a good reason to shop with you consistently. Monitor this metric, use personalized campaigns, and encourage your customers to make repeat purchases.