Share of returning customers shows how many of your buyers place more than one order. The rest are one-time buyers. It’s essential to keep those two in balance that fosters growth. Only one-timers limit growth because you’re run out of new customers to acquire in your market, or run out of money to pay acquisition costs.
The higher share of returning customers you have, the more repeat orders and higher CLTV. This is a fanbase of loyal customers you can rely on for a stable revenue stream, which translates into a positive cash flow and better profitability.