Customer Retention Metrics Every Shopify Brand Should Track
If you’re running a Shopify store and not tracking retention metrics—you’re flying blind.
Retention is one of the most powerful growth levers, and it starts with knowing what to measure. Here are the key metrics every brand should be watching.
1. Repeat Purchase Rate (RPR)
What it is:
The % of customers who buy more than once.
Formula:
Repeat Customers ÷ Total Customers
Why it matters:
If your RPR is low, your loyalty program isn’t working. Fix this before you scale ads or push top-of-funnel traffic.
2. Customer Lifetime Value (LTV)
What it is:
How much a customer is worth to your business over time.
Formula (simplified):
AOV × Purchase Frequency × Customer Lifespan
Why it matters:
Helps you know how much you can spend to acquire a customer—and justifies investing in loyalty.
3. Redemption Rate
What it is:
The % of earned loyalty points or rewards that actually get used.
Why it matters:
High redemption = engagement. Low redemption = nobody knows or cares about your program.
Pro tip:
Don’t be afraid of high redemption—it means people are sticking around and spending again.
4. Enrollment Rate
What it is:
How many of your customers are in your loyalty or membership program.
Why it matters:
If less than 25% of your customers are enrolled, your program may be buried or under-promoted.
5. Referral Participation Rate
What it is:
The % of customers who refer others (or at least try to).
Why it matters:
Referrals lower CAC and increase trust—but only if people know the program exists and feel it’s worth sharing.
6. Member vs Non-Member AOV
What it is:
Compare average order value between loyalty/membership users and regular shoppers.
Why it matters:
You should see higher AOV for members—if not, it’s time to rework your benefits.
7. Churn Rate (Optional for Subscriptions or Memberships)
What it is:
The % of customers who cancel or don’t return over a given period.
Why it matters:
Helps you measure whether customers are getting long-term value.
Final Thoughts
Loyalty programs aren’t just about making customers feel special—they should move the needle on real business metrics.
Track these 6–7 KPIs regularly. When they go up, so will your bottom line.