Known Customer Rate
Definition
Known Customer Rate is the percentage of customers who make purchases while logged into an account or identified by their email or other credentials.
It tells you how much of your customer base is recognized by your system, allowing for better personalization, retargeting, and loyalty building.
Good or Bad?
Good?
- A high rate means more opportunities for tailored experiences
- Makes follow-up campaigns and email automation more effective
- Improves customer loyalty tracking
Bad?
- A low rate could indicate poor incentives for account creation
- Missed chances to personalize or upsell
- Can signal lack of trust if users avoid logging in
Why does it matter?
Knowing your customers unlocks better targeting, smarter offers, and more repeat purchases.
Without it, you’re often guessing at who’s buying from you.
Common Mistakes
- Forcing account creation too early
- Not offering guest checkout but also not explaining its benefits
- Failing to collect emails during guest checkout
How to Improve It?
- Offer incentives to create an account, like loyalty points or faster checkout
- Use smart email capture techniques during guest checkout
- Highlight the benefits of being a known customer
Recommended Plugin
WooCommerce store owners can use plugins that offer social login, one-click account creation, and email capture at checkout to improve Known Customer Rate.
Real-World Example
An online bookstore saw a 28% increase in Known Customer Rate after offering a 10% discount on the next purchase for creating an account.
Related Terms
- Customer Retention
- Email Collection
- Guest Checkout
- Customer Lifetime Value
FAQs
How do I calculate Known Customer Rate?
Divide the number of identified purchases by the total number of purchases, then multiply by 100.
What is a good Known Customer Rate?
It varies, but anything above 50% is typically considered strong for most stores.
Does guest checkout hurt this metric?
Not if you use smart methods to capture emails or offer account creation after the purchase.
