How to Calculate Customer Retention Rate (CRR) in Shopify

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If you're running a Shopify store, you know that it's essential to retain your customers to maintain profitability and growth. Understanding your Customer Retention Rate (CRR) is critical to achieving this goal. In this article, we'll explore how to calculate CRR in Shopify and why it's crucial for your store's success.

Understanding Customer Retention Rate (CRR)

Customer Retention Rate (CRR) is a metric that measures the percentage of customers who return to purchase from your store regularly. It's a crucial metric to track because customer retention is a key driver of success, profitability, and growth for any store.

However, customer retention is not just about getting customers to come back and purchase from your store again. It's also about building relationships with your customers and creating a loyal customer base. This is important because loyal customers are more likely to refer your store to their friends and family, leave positive reviews, and spend more money on your products.

So, how can you improve your CRR? One way is to provide excellent customer service. This means responding to customer inquiries promptly, resolving any issues or complaints quickly, and making sure your customers feel valued and appreciated. Another way is to offer incentives for customers to come back and shop with your store again. This could be in the form of discounts, free shipping, or exclusive offers.

What is Customer Retention Rate?

Customer Retention Rate is the percentage of customers in a specific period who have shopped with your store more than once. It measures the percentage of returning customers out of the total number of customers who made purchases in a specific time frame, such as a month or a quarter.

It's important to note that CRR is not the same as customer loyalty. Customer loyalty is a deeper emotional connection that customers have with your brand, while CRR is a more straightforward metric that measures the percentage of customers who come back to your store.

Calculating your CRR is relatively simple. Take the number of customers who made repeat purchases during a specific period and divide it by the total number of customers who made purchases during that period. Then, multiply the result by 100 to get your CRR percentage.

Why is CRR Important for Your Shopify Store?

Customer Retention Rate metric plays an essential role in driving long-term profitability and growth of your Shopify store. It helps you understand how many customers are returning to your store and ensuring that your marketing and retention strategies are working. If you can improve your CRR, you'll see more sales, increase your customer base, and extend the lifetime value of your customers.

Additionally, having a high CRR can also help you save money on marketing and advertising costs. It's more cost-effective to retain existing customers than to acquire new ones. By focusing on improving your CRR, you can reduce your customer acquisition costs and increase your overall profitability.

In conclusion, customer retention is a critical factor in the success of any Shopify store. By understanding and tracking your CRR, you can develop effective retention strategies, build a loyal customer base, and drive long-term growth and profitability for your business.

Setting Up Your Shopify Store for CRR Calculation

Calculating customer retention rate (CRR) is an essential aspect of running a successful e-commerce business. It helps you determine how many customers are returning to your store and making repeat purchases. By tracking this metric, you can identify areas of improvement and take actionable steps to increase customer loyalty.

Integrating Google Analytics with Shopify

One of the most effective ways to calculate CRR is by integrating Google Analytics into your Shopify store. This allows you to track customer behavior, such as the number of visits, time spent on site, and purchase history. To integrate Google Analytics, follow these steps:

  1. Log in to your Google Analytics account and set up an e-commerce tracking code.
  2. Copy the code provided by Google Analytics.
  3. Go to your Shopify admin and navigate to the Google Analytics integration section.
  4. Paste the tracking code into the provided field.
  5. Save your changes and wait for data to populate.

Once you've completed these steps, you'll be able to track your CRR and other important metrics in Google Analytics.

Utilizing Shopify Reports and Analytics

In addition to integrating Google Analytics, you can also utilize the Reports and Analytics tool in the Shopify admin to track your CRR. This tool provides comprehensive reports for orders, sales, and revenue, as well as critical performance metrics you need to track. By leveraging these tools, you can take actionable steps to improve your CRR.

For example, you can use the reports to identify your best-selling products and create targeted marketing campaigns to promote them to your customers. You can also use the data to identify trends in customer behavior and adjust your product offerings and pricing accordingly.

Ultimately, by utilizing both Google Analytics and Shopify Reports and Analytics, you can gain a deeper understanding of your customers and their purchasing habits. This knowledge can help you improve your customer retention rate and drive long-term success for your e-commerce business.

Calculating Customer Retention Rate in Shopify

Identifying the Time Period for CRR Calculation

To calculate CRR, you'll need to determine the time frame for your calculation. Typically, one year is a standard period to track your CRR. However, you can choose any period that suits your business needs or objectives.

Determining the Number of Returning Customers

Next, you'll need to determine the number of returning customers during that time period. To calculate this, you'll need to identify the customers who made repeat purchases during the selected time frame. By using Google Analytics or Shopify Reports, you can find these customers and calculate the total number of returning customers.

Calculating the CRR Formula

Finally, calculate your CRR using the following formula:

  1. Identify the total number of customers who made purchases during the selected period (new + returning).
  2. Calculate the number of returning customers for that period.
  3. Divide the number of returning customers by the total number of customers and multiply by 100.
  4. The resulting answer is your Customer Retention Rate.

Analyzing Your CRR Results

What is a Good Customer Retention Rate for Shopify Stores?

According to industry standards, a good customer retention rate for eCommerce stores is around 20-40%. However, this can vary depending on your industry, market segment, and business objectives. Whatever your CRR may be, tracking this metric and comparing it with industry benchmarks should be an ongoing effort.

Identifying Trends and Patterns in Your CRR

By analyzing the trends and patterns in your CRR over time, you can gain insights into the effectiveness of your marketing and retention strategies. Identifying these patterns can help you pinpoint areas of improvement in your marketing tactics and retention strategies.

Strategies to Improve Customer Retention Rate in Shopify

Enhancing Customer Experience

Improving your customers' experience is critical to increasing your CRR. You can provide a better experience by offering personalized customer service, simplifying your checkout process, and optimizing your website for mobile devices.

Implementing Loyalty Programs and Rewards

Implementing loyalty programs and rewards is another effective strategy to increase CRR. Offering discounts, free products, or exclusive access to your store can incentivize customers to return and make additional purchases.

Personalizing Marketing and Communication Efforts

Personalized marketing and communication can also help increase your CRR. You can achieve this by segmenting your customers and sending targeted emails or promotions based on their interests or purchase history.


Calculating and tracking your Customer Retention Rate is essential for the long-term success of your Shopify store. By implementing effective retention strategies, such as enhancing customer experience, implementing rewards programs, and personalizing communication efforts, you can improve your CRR and drive growth for your store.

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