65 Customer Retention Statistics You Need to Know in 2024

Holding connected to customers is simply a apical precedence for astir businesses. And it’s overmuch easier to bash that erstwhile you genuinely recognize what your customers privation and expect from your business.

Customer retention stats connection invaluable insights into lawsuit expectations, preferences, and behavior. They uncover the communal factors that support customers coming backmost and what tends to thrust them away. 

In this article, we’ll stock 65 of the astir important lawsuit retention statistics.

The much you align your concern strategies and services with these insights, the higher your chances of delivering a stellar lawsuit acquisition and gathering a beardown basal of loyal, repetition buyers. 

Key Takeaways

The lawsuit retention statistic we’ll sermon beneath item respective important points, including:

• Customer retention costs importantly little than acquiring caller customers
• Existing customers thin to walk much (and much often) than caller customers
• Improving lawsuit acquisition is simply a large operator of lawsuit loyalty
• A well-structured loyalty programme tin beryllium highly effectual astatine enhancing lawsuit retention and expanding sales
• Customer retention rates alteration importantly crossed antithetic industries

With these important points successful mind, let’s dive into the numbers.

General Customer Retention Statistics

The statistic beneath supply an overview of the costs progressive successful lawsuit retention, and shed immoderate airy connected repetition lawsuit buying habits:

1. Customer churn costs U.S. providers $168 cardinal per twelvemonth (CallMiner)
2. U.S. companies could prevention implicit $35 cardinal per twelvemonth by focusing connected keeping their existing customers blessed (CallMiner)
3. In 2013, ecommerce businesses paid an mean of $9 to get a caller customer. By 2022, this had risen to $29 (a 222% increase). (SimplicityDX)
4. Businesses person a 60% to 70% accidental of selling to an existing customer, portion for a caller imaginable it’s conscionable 5% to 20% (Forbes, quoting the publication “Marketing Metrics”)
5. Repeat customers walk 67% much than caller customers (BIA Advisory Services)
6. Some 52% of customers person gone retired of their mode to bargain from their favourite marque (Zendesk)
7. Two-fifths of companies spot an adjacent absorption connected lawsuit retention and acquisition (Invesp)
8. As overmuch arsenic 44% of companies inactive don’t cipher their lawsuit retention complaint (CustomerGauge)
9. Almost three-quarters of consumers consciousness loyalty towards a peculiar marque oregon institution (Zendesk)
10. Over 55% of consumers are loyal to a marque due to the fact that they emotion the merchandise (Yotpo)
11. A 3rd of consumers accidental it takes 3 purchases to make marque loyalty (Yotpo)

Impact of Customer Retention connected Profits

Perhaps the astir important interaction lawsuit retention tin person connected a concern involves its profits. The statistic beneath exemplify the powerfulness of lawsuit retention connected a business’s bottommost line:

12. Some 84% of companies that enactment to amended lawsuit acquisition announcement an uplift successful gross (Dimension Data)
13. Customer retention is captious for the 61% of tiny businesses that accidental implicit fractional their gross comes from repetition customers (BIA Advisory Services)
14. Small ecommerce businesses make 35% of their gross from the apical 5% of loyal, repetition customers (Smile.io)
15. After buying from your online store for the archetypal time, a lawsuit has a 27% accidental of buying again. After a 2nd purchase, there’s a 49% accidental they’ll bargain again. And aft a 3rd purchase, the likelihood increases to 62%. (Smile.io)

Image Source: Smile.io

16. The longer customers bargain from your business, the higher their mean bid worth volition beryllium for astir industries. For example, successful the quality and cosmetics industry, customers walk 30% much per bid aft buying with a institution for six months and 45% much aft 36 months. (Smile.io)
17. On average, your loyal apical 10% of customers walk doubly arsenic overmuch per bid compared with your bottommost 90% of customers (Smile.io)
18. When it comes to word-of-mouth promotion, 60% of loyal customers volition stock their favourite marque with their friends and household (Yotpo)
19. Over 39% of customers are consenting to walk much with a marque they’re loyal to, adjacent if determination are cheaper options elsewhere (Yotpo)

Customer Loyalty Program Statistics

One method galore companies usage to clasp customers is to instrumentality a loyalty program. The information beneath shows the effect this tin person connected lawsuit retention:

20. In 2023, the planetary marketplace size for loyalty absorption was $5.57 cardinal (Statista)
21. The worldwide loyalty absorption marketplace is forecast to scope $28.65 cardinal by 2030 (Fortune Business Insights)
22. Between 2017 and 2019, 69% of C-suite executives reported expanding concern successful lawsuit loyalty programs (Business Wire, quoting LoyaltyOne's Big Picture Loyalty report)
23. Over 71% of companies put astatine slightest 2% of their full revenues into loyalty programs (Business Wire, quoting LoyaltyOne's Big Picture Loyalty report)
24. Loyalty programme members lend to 43% of companies’ yearly income (Business Wire, quoting LoyaltyOne's Big Picture Loyalty report)
25. Almost each companies (95%) accidental loyalty programme members walk much than non-members each year. In fact, 60% of companies accidental loyalty programme members walk 2 to 3 times more. (Business Wire, quoting LoyaltyOne's Big Picture Loyalty report)
26. Loyalty programs tin enactment well, with 79% of American consumers saying that participating successful a loyalty programme leads them to bargain from a marque much often (Statista)
27. Around 70% of U.S. consumers participating successful a escaped oregon paid loyalty programme accidental they walk much clip with the marque arsenic a effect (Statista)
28. While 76% of consumers accidental they don’t wage for the loyalty programs they enactment in, 64% would beryllium consenting to bash truthful successful speech for further benefits similar discounts and faster escaped shipping (Business Wire, quoting LoyaltyOne's Big Picture Loyalty report)
29. Over 50% of companies are considering introducing fee-based loyalty programs (Business Wire, quoting LoyaltyOne's Big Picture Loyalty report)
30. The mean U.S. user belongs to much than 16 loyalty programs but actively uses little than fractional of them (Statista)

Image Source: Statista

31. Over 50% of U.S. consumers are apt to summation their information successful loyalty programs (Statista)
32. Almost 70% of paid loyalty programme members mention escaped shipping arsenic a cardinal information for joining. Over 60% mention instant discounts arsenic a cardinal motivation. (Statista)
33. Over 90% of executives successful the U.S. judge their loyalty programs should supply customers with much rewards and benefits (Statista)

Customer Service Statistics

One of the astir important factors that tin interaction lawsuit retention is however your concern handles lawsuit service. See the statistic beneath to recognize conscionable however captious a affirmative lawsuit acquisition tin be:

34. Over 90% of consumers deliberation that a affirmative lawsuit work acquisition makes them much apt to bargain again (Salesforce)
35. Around 83% of U.S. consumers judge bully lawsuit work is either an important oregon a critically important operator of marque loyalty (Statista)
36. Some 58% of consumers accidental lawsuit work is precise important to their loyalty to a marque (Microsoft)
37. Customers that person “value enhancement” during work interactions person an 82% probability of staying with that institution (Gartner)
38. In 2021, 58% of customers said their expectations of lawsuit work were higher than successful 2020 (Talkdesk)
39. Over 60% of customers judge the quality to resoluteness issues rapidly is 1 of the astir important aspects of a bully lawsuit work experience. Over 40% deliberation the aforesaid happening astir 24/7 support. (Zendesk) 
40. More than fractional of customers mention agelong clasp times arsenic 1 of the astir frustrating aspects of a atrocious lawsuit acquisition (Zendesk)
41. Nearly 70% of customers are annoyed erstwhile their telephone gets transferred betwixt departments (Zendesk)
42. Around 44% of customers privation businesses to guarantee that lawsuit work and enactment teams resoluteness their issues efficaciously and efficiently (CallMiner)

Differences successful Customer Retention Across Demographics

The statistic beneath exemplify however antithetic demographics consciousness astir marque loyalty:

43. Just nether 60% of U.S. consumers accidental that erstwhile they are loyal to a brand, they volition beryllium loyal for beingness (Acquia)
44. Three-quarters of U.S. consumers are much apt to beryllium loyal if a marque understands them astatine a idiosyncratic level (Acquia)
45. Around 40% of millennials and Gen Z customers typically resoluteness issues with a institution done messaging (Zendesk)
46. Two-fifths of 16- to 34-year-olds are much apt to store with an online retailer if they tin way returns successful 1 app, compared to conscionable 33% of 45- to 54-year-olds and 25% of those implicit 55 (Klarna)
47. Surveys amusement 46% of U.S. consumers, 40% of U.K. consumers, and 88% of Brazilian consumers person a much favorable presumption of brands that respond to questions and complaints connected societal media (Microsoft)
48. During the COVID-19 pandemic, 21% of Gen Z consumers and 20% of millennials developed higher expectations for lawsuit work interactions. Only 11% of consumers implicit 55 had the aforesaid summation successful expectations. (Zendesk)

Customer Retention Behavior Statistics

Understanding lawsuit behaviour tin amusement you what radical prioritize erstwhile it comes to staying loyal to 1 institution oregon another. The information beneath sheds airy connected the main reasons customers thin to instrumentality oregon switch:

49. A survey recovered that 31% of consumers person switched brands due to the fact that a institution was lying astir merchandise show (YouGov)
50. Poor lawsuit work has caused 61% of consumers to power brands (Microsoft)
51. Almost 74% of consumers are apt to power brands aft a atrocious telephone halfway acquisition (CallMiner)
52. About 50% of consumers would power to a rival aft 1 atrocious lawsuit experience. In the lawsuit of much than 1 atrocious experience, this increases to 80%. (Zendesk)
53. Research shows that 62% of shoppers won’t bargain from a retailer that doesn’t connection escaped returns. And 84% of shoppers won’t bargain from the aforesaid retailer again aft a mediocre returns experience. (Klarna)
54. In 2020, 81% of consumers switched providers, contempt lone 63.9% readying to bash truthful astatine the commencement of the twelvemonth (CallMiner)
55. Over 60% of consumers blamed precocious oregon accrued prices for switching work providers successful 2020, with 34.6% doing truthful due to the fact that they felt they weren’t being treated reasonably (CallMiner)

Average Customer Retention Rates by Industry

We person already discussed however demographics tin interaction lawsuit retention. But it besides varies by industry, arsenic the information beneath shows:

56. What is simply a bully lawsuit retention rate? The reply to this varies wide from 1 manufacture to the next. In 2018, media and nonrecreational services companies had the highest lawsuit retention rates astatine 84%. The manufacture with the lowest retention rates was hospitality, question and restaurants, with 55%. (Statista)

Image Source: Statista

57. In 2023, 49% of customers were “extremely likely” to bargain again from a supermarket marque they bought from successful the past 90 days, compared to 25% for banks (XM Institute)

Image Source: XM Institute

58. Most apps and bundle person a 6% to 20% eight-week retention complaint (Mixpanel)

Online Channel Use for Customer Retention

The last portion of the lawsuit retention puzzle is knowing the champion ways to attack it. More specifically, which channels you should use. The information beneath outlines the astir important ones to consider:

59. Almost 90% of U.S. marketers usage email for lawsuit retention, 63% usage societal media engagement, and 55% usage nonstop message (Statista)
60. Over 52% of consumers similar to interaction brands by telephone. Only 0.3% of consumers similar to marque interaction by letter. (CallMiner)

Image Source: CallMiner

61. Just implicit 40% of marketers usage their SEO efforts for lawsuit retention (Statista)
62. Customers walk betwixt 20% and 40% much with brands that respond to lawsuit work requests connected societal media (McKinsey)
63. Half of customers prime a lawsuit work transmission based connected however rapidly they request a effect (Zendesk)
64. Almost 70% of customers privation to resoluteness arsenic galore issues arsenic they tin connected their ain (Zendesk)
65. Only 35% of companies follow an omnichannel attack to lawsuit service. And lone 28% connection a cognition base. (Zendesk)

Further reading: What Is Omnichannel? (+ Tips to Create Seamless Experiences)

Improve Your Customer Retention Metrics with Semrush

Focusing connected lawsuit retention isn’t immoderate secondary maturation hack—it’s a cardinal portion of gathering a sustainable, profitable business.

Not lone is it little costly to clasp existing customers than to get caller ones, but blessed and loyal customers are much apt to walk much and advocator for your brand.

But arsenic the stats show, holding onto customers is nary casual feat. It requires a dedicated attack with continual improvements.

Fortunately, tools similar Semrush’s One2Target marque it casual to physique an accurate, elaborate representation of your audience’s unsocial preferences. Helping you tailor your products, services, and selling strategies to their circumstantial needs. 

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