The difference between conversion rate and repeat rate
Posted: Mon Apr 21, 2025 9:17 am
The repeat purchase rate is the percentage of new customers who have purchased a product once and who then purchase again, and is calculated by dividing the number of repeat purchasers by the number of new customers.
A high repeat rate indicates that customers are satisfied with the e-commerce site and want to special database use it again, which helps develop them into loyal customers.
On the other hand, the conversion rate is the number of orders, including new customers, divided by the total number of accesses, and is an indicator that focuses on new purchases. Although the calculation methods and focus of the conversion rate and repeat rate are different, both are important indicators in the operation of an EC site.
An e-commerce site with both a high conversion rate and repeat visit rate has the potential to steadily and sustainably increase sales. By focusing not only on acquiring new customers but also on strengthening relationships with existing customers, you will be able to operate a stable e-commerce site in the long term.
Reasons for declining conversion rates
Reasons for declining conversion rates
Here we will explain the factors that cause a decrease in conversion rate.
1. Appropriate information is not being adequately communicated.
2. Advertisement targets are not appropriate.
3. EC sites are not designed from the customer's perspective.
Not adequately promoting appropriate information
One of the reasons for the decline in conversion rates on e-commerce sites is a lack of information that users are looking for or it is presented in a way that is difficult to understand.
If users don't have the information they need to make a purchase, they may be less willing to buy, which can ultimately lower your conversion rates.
In particular, the following information is important to many users:
・Product size
, functions
, warranty details
, reviews and reputation
, color
, price, etc.
By providing the above information in an easy-to-understand manner, you can alleviate users' concerns and doubts and encourage them to make purchases.
In particular, using visual elements (images and videos) to convey information will deepen users' understanding and lead to improved conversion rates.
Inappropriate ad targeting
If the targeting of your ads is not appropriate, even if the number of visitors to your e-commerce site increases, they will not make purchases and you cannot expect to improve your conversion rate.
Increasing the number of visitors is important, but if you target people with low purchasing intent, it will be difficult to achieve results.
Misaligned targets can also lead to the following problems:
・Advertising costs are wasted
・Click-through rates decrease
・Bad impact on brand image, etc.
When targeting ads, it is necessary to set detailed attributes such as age, gender, interests, and region, and deliver ads to users who have a high affinity with your products.
E-commerce sites are not designed from the customer's perspective
If the design and structure of an e-commerce site are not easy for users to use and understand, they will abandon their purchasing process midway, resulting in a lower conversion rate.
In particular, abandonment rates tend to increase when users feel stressed due to the hassle of searching for products or the complexity of the purchasing process.
Below are some examples of sites that are not designed with the user in mind.
・The site search is difficult to use
・Smartphone compatibility is insufficient
・Product pages are difficult to read
・The purchasing process is complicated, etc.
To solve the above problems, it is necessary to rethink your EC site from the customer's perspective and aim to create an intuitive and easy-to-use design. If you can create an EC site that customers can use comfortably, you can expect to improve your conversion rate.
A high repeat rate indicates that customers are satisfied with the e-commerce site and want to special database use it again, which helps develop them into loyal customers.
On the other hand, the conversion rate is the number of orders, including new customers, divided by the total number of accesses, and is an indicator that focuses on new purchases. Although the calculation methods and focus of the conversion rate and repeat rate are different, both are important indicators in the operation of an EC site.
An e-commerce site with both a high conversion rate and repeat visit rate has the potential to steadily and sustainably increase sales. By focusing not only on acquiring new customers but also on strengthening relationships with existing customers, you will be able to operate a stable e-commerce site in the long term.
Reasons for declining conversion rates
Reasons for declining conversion rates
Here we will explain the factors that cause a decrease in conversion rate.
1. Appropriate information is not being adequately communicated.
2. Advertisement targets are not appropriate.
3. EC sites are not designed from the customer's perspective.
Not adequately promoting appropriate information
One of the reasons for the decline in conversion rates on e-commerce sites is a lack of information that users are looking for or it is presented in a way that is difficult to understand.
If users don't have the information they need to make a purchase, they may be less willing to buy, which can ultimately lower your conversion rates.
In particular, the following information is important to many users:
・Product size
, functions
, warranty details
, reviews and reputation
, color
, price, etc.
By providing the above information in an easy-to-understand manner, you can alleviate users' concerns and doubts and encourage them to make purchases.
In particular, using visual elements (images and videos) to convey information will deepen users' understanding and lead to improved conversion rates.
Inappropriate ad targeting
If the targeting of your ads is not appropriate, even if the number of visitors to your e-commerce site increases, they will not make purchases and you cannot expect to improve your conversion rate.
Increasing the number of visitors is important, but if you target people with low purchasing intent, it will be difficult to achieve results.
Misaligned targets can also lead to the following problems:
・Advertising costs are wasted
・Click-through rates decrease
・Bad impact on brand image, etc.
When targeting ads, it is necessary to set detailed attributes such as age, gender, interests, and region, and deliver ads to users who have a high affinity with your products.
E-commerce sites are not designed from the customer's perspective
If the design and structure of an e-commerce site are not easy for users to use and understand, they will abandon their purchasing process midway, resulting in a lower conversion rate.
In particular, abandonment rates tend to increase when users feel stressed due to the hassle of searching for products or the complexity of the purchasing process.
Below are some examples of sites that are not designed with the user in mind.
・The site search is difficult to use
・Smartphone compatibility is insufficient
・Product pages are difficult to read
・The purchasing process is complicated, etc.
To solve the above problems, it is necessary to rethink your EC site from the customer's perspective and aim to create an intuitive and easy-to-use design. If you can create an EC site that customers can use comfortably, you can expect to improve your conversion rate.