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Top 5 Retention Metrics Every eCommerce Brand Must Watch

  • nikipantry
  • Jul 30
  • 3 min read


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Why Retention > Acquisition in 2025

In a post-iOS14 world of rising ad costs, growing competition, and tighter consumer wallets, one truth stands tall:

Retention is more profitable than acquisition.

According to Bain & Co., increasing customer retention by just 5% can increase profits by 25%–95%. That’s why top eCommerce brands—and the agencies they trust—are obsessed with retention metrics.

In this article, we break down:


  • The 5 most important retention KPIs

  • What each one tells you

  • How to improve them through strategy, design, and tech

  • Tools we use as an agency to drive real results


What Is a Retention Metric, Really?

Retention metrics measure how well your store keeps customers engaged, loyal, and returning after the first sale. They're a direct reflection of your:


  • Product quality

  • Post-purchase experience

  • Email/SMS strategy

  • Website UX

  • Fulfillment speed


The Top 5 Retention Metrics Every Brand Must Track


1. Repeat Purchase Rate (RPR)


What it is: The % of customers who make more than one purchase in a given time period.

Formula: Repeat Customers / Total Customers × 100

Benchmark:

  • 20–30% is average

  • >35% is strong, especially for CPG, beauty, and wellness

Agency Strategy:

  • We use Klaviyo flows to re-engage customers post-purchase

  • Build "second-purchase" offers or bundles

  • Use post-purchase surveys to understand what brings customers back


2. Customer Lifetime Value (LTV)


What it is: The total net profit a customer brings over their lifetime.

Formula: Average Order Value × Purchase Frequency × Customer Lifespan

Why it matters: High LTV means you can spend more on ads without burning ROI.

Agency Strategy:

  • Improve AOV through upsells

  • Increase frequency with subscriptions or replenishment emails

  • Use predictive LTV tools in Shopify or apps like Lifetimely


3. Churn Rate


What it is: The % of customers who stop buying or unsubscribe from your store/emails.

Formula: (Customers Lost / Total Customers at Start) × 100

Warning Signs:

  • High unsubscribe rates

  • Declining repeat purchase rate

  • Customers who buy once and never return

Agency Strategy:

  • Run re-engagement email campaigns at the 30-, 60-, and 90-day mark

  • Use retention cohorts in analytics to spot drop-off patterns

  • Survey churned customers for insights


4. Time Between Purchases


What it is: The average number of days between a customer’s first and second purchase.

Why it matters: If this number is too long, you risk losing interest. Shorter = higher LTV.

Agency Strategy:

  • We set automated win-back campaigns at day 15/30/45

  • Test different reorder incentives or urgency triggers

  • Use loyalty points that expire within a defined window


5. Customer Retention Rate


What it is: The % of customers who return to purchase again over a set period.

Formula: (Customers at End of Period - New Customers) / Customers at Start of Period × 100

Why it matters: Retention rate is the most complete snapshot of brand health over time.

Agency Strategy:

  • Strengthen post-purchase experience (thank-you page, email, delivery)

  • Optimize support and fulfillment to remove friction

  • Integrate reviews, UGC, and loyalty in post-sale touchpoints


How We Help Clients Improve Retention Metrics


At Durant Technologies, our retention strategy spans across:


Category

Our Approach

Email & SMS

Klaviyo-powered flows: welcome, post-purchase, win-back, loyalty

UX Optimization

Persistent carts, fast-loading PDPs, smart product recommendations

Personalization

Segmentation by behavior, interest, location

Analytics

LTV modeling with Lifetimely + GA4 cohorts

Loyalty Programs

Setup & management using Smile.io or LoyaltyLion


Real Example: Boosting LTV by 45% in 6 Months

Client: Sustainable skincare brand

Problem: LTV stuck at $57

Solution:

  • Rebuilt post-purchase journey

  • Added subscription option

  • Introduced 3-tier loyalty program

  • Built second-purchase incentives

Result:→ LTV increased to $83→ Repeat purchase rate grew from 21% → 34%→ Email revenue doubled


Final Tips: Your Retention KPIs = Your Brand Health Score

  • Don't just track retention—diagnose and act on it

  • Focus on both micro-wins (open rates, AOV) and macro-metrics (LTV, churn)

  • Set a quarterly goal for each of the 5 metrics above

  • Test > learn > optimize


Want Better Retention Metrics? Let’s Make It Happen.

Durant Technologies helps brands scale smarter by building loyal, profitable customer bases.

 
 
 
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