repeat rate

Repeat rate is a number of times a product is purchased by an individual consumer within a period of time. For example, soap has a higher repeat rate than automobiles, because it is used up more quickly.

A high repeat rate for a particular brand indicates a high degree of customer satisfaction. Repeat rates are particularly important in the evaluation of a new product. The time needed to conduct a product test is proportionate to the length of time between purchases, because the marketer must evaluate whether the same consumer again selects that product or brand.

The results of a repeat-rate measurement can be used to determine future promotional strategies. A high repeat rate after little introductory advertising indicates that additional advertising will provide disproportionately great returns. A low repeat rate indicates that the product might benefit from being promoted more heavily. If, after heavy promotion, repeat rates remain low, this suggests that the product should be redesigned or abandoned.

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