Money, pricing & unit economics

What's the difference between repurchase rate and retention rate, and which should I report to investors?

The short answer

Repurchase rate measures whether a customer bought again at all in a period; retention rate tracks whether they're still active in a cohort-defined sense over time - they answer different questions and conflating them makes your deck look worse or better than reality depending on which one you picked. Report both, but lead with cohort retention curves for investors, because that's what actually predicts LTV and payback, not a single-period repurchase snapshot. 'LTV is the new CAC' isn't a slogan - retention-led brands are the ones clearing 4:1+ LTV:CAC.

A quick summary to orient you. The real value is below: the resources worth your time, from people who've actually done it, not us.

Here are the resources

Hand-picked from around the web, each with a note on why it earns your time. India-specific ones carry a badge.

2 resources 2 link-checked

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📄 Article
✓ Link checked Free Intermediate

Why we picked it Directly resolves a confusion most founders don't realise they have - repurchase and retention sound interchangeable but measure different things and get reported inconsistently across decks.

Repurchase vs. Retention Rate: How to Measure and Why These Metrics Are Essential for DTC Brands

From peelinsights.com by Peel Insights

  • Repurchase rate is a period snapshot; retention rate is a cohort-tracked curve over time.
  • Investors and internal teams often conflate the two, producing misleading comparisons.
  • Define which one you're reporting explicitly, every time.
Open peelinsights.com
📄 Article
✓ Link checked Free Intermediate

Why we picked it Frames cohort analysis explicitly around profitable growth rather than vanity retention metrics - useful for tying the analysis back to whether growth is actually making money.

Cohort Analysis for DTC Ecommerce: The Practical Way to Measure Profitable Growth

From admetrics.io by Admetrics

  • Cohort analysis should connect to profitability, not just retention percentages.
  • Measure cohorts by acquisition channel to see which channel produces durable customers.
  • Practical setup guidance for teams without a dedicated analytics function.
Open admetrics.io

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