65+ Impressive Customer Retention Statistics to Know in 2024

Since you came here to know customer retention statistics, we will start by telling you the most important one. As per Bain & Company research, a 5% improvement in customer retention can increase profits by 25 to 95%. Seems unrealistic? It is not.

However, the percentage of increase depends on the effectiveness of the customer retention strategy. 

An efficacious customer retention strategy is derived from solid research and planning. The essence of planning is research; an integral part of research is knowing the statistics.

The business statistics are derived either by the experts by doing a thorough analysis of the retention campaigns carried out by various companies or are the outcome of such campaigns which the companies share on their own. 

Those of you who are in doubt regarding the advantages of customer retention statistics must have a look at these 65+ fascinating statistics. These will forever change your perspective on the importance of valuing existing customers.

Customer Retention Statistics 2024

Let us first start by knowing why retaining a customer is essential. 

Why Retain a Customer?

Shep Hyken has rightly said, ‘All of your customers are partners in your mission. This reason is enough to understand the importance of retaining the customer. The below-given statistics below further support this statement. 

• The success rate for customer retention is around 70%. (Textedly)
  
  
• More than 65% of sales happen because of existing customers. (Zippia)
  
  
• The average purchase made by the top 10% of loyal customers is three times higher than the purchase made by the rest of the customers. (Zippia)
  
  
• 50% of existing customers are willing to try a new product from a brand. (Zippia)
  
  
• It is expected that in the year 2024, the investment in customer experience technologies will reach $641 billion. (Businesswire)
  
  
• Pareto Principle is also applicable in marketing. Hence, 20% of customers are responsible for 80% of sales. (Zinrelo)
  
  
• 51% of B2B avoid vendors due to lousy customer service. (GetFeedback)
  
  
• 80% of customers are ready to pay more to get a better experience. (SupperOffice, Walker)

What is the Impact of Losing Customers?

Losing one customer is more than a loss. These statistics showcase the impact of losing customers on the company. 

• 72% of buyers move on to a new brand after a bad experience. (Zippia)
  
  
• 71% of customers end their ties with a business because of poor business. (Neil Patel)
  
  
• Companies suffer a loss of around $75 billion yearly because of bad customer service. (Zippa)
  
  
• $243 is the average value of customers who cut ties with brands. Neil Patel provided this global stat. (Neil Patel)
  
  
• Poor customer service can cost up to $83 billion in the USA. ( Neil Patel)

How Important is Customer Loyalty for Business?

Loyal customers share the value and mission of the brand with a larger audience, leading to organic customer acquisition. However, the importance of customer loyalty is not restricted to this extent. It goes beyond, and the following statistics show how. 

• In 2019, global companies invested around $323 billion to create a customer loyalty ecosystem. (Zippa)
  
  
• 74% of customers agreed that they remain loyal to a brand because of good product quality. (Zippia)
  
  
• In the USA, customers are involved in as many as 16.7 loyalty schemes. However, they don’t even use half of it regularly. (Zippia)
  
  
• 56% of buyers maintain loyalty towards those brands that understand them and focus on customer services. (Zippia)
  
  
• 37% of customers said that getting a reward makes them loyal to a brand. (Zippa)
  
  
• Customers globally stated that brand transparency makes them loyal. (Zippa)
  
  
• The spending of loyal customers is 67% higher than that of new clients. (Sixads)

Can Customer Satisfaction and Better Experience Improve Sales?

Yes, customer satisfaction and experience are the most significant reasons customers decide to stick by or leave a brand. Some of the most crucial customer retention statistics that show the importance of customer satisfaction are:

• Customers spend 2.6x times more when satisfied with the services of a company. (Smart Tribune)
  
  
• In 2020, 60% of customers in the US were more open to purchasing a brand that improved its customer service. (Zippia)
  
  
• 65% of customers in the USA make a second purchase based on the experience of the first purchase. (CSA)
  
  
• Globally, 70.7% of businesses agreed that efficient resolution improved customer satisfaction. (Zippia)
  
  
• 77% of customers recommend a brand after a good experience. (GetFeedback)
  
  
• 73% of customers make a purchase based on previous experience. (PwC)
  
  
• 42% of customers are likely to purchase from companies that offer original ways of experiencing products/services. (Oracle)
  
  
• 56% of people say that excellent customer satisfaction motivates them to stay loyal to the brand. (Zippia)
  
  
• One in three customers pays more for a better experience. (Adobe)
  
  
• 26% of US customers say that poor customer service leads to a lack of trust in the brand. (Zippia)
  
  
• 43% of consumers are ready to pay more for convenience. (PwC)
  
  
• 80% of customers say that confidence, speed, knowledgeable help, and good service are crucial elements that lead to a good experience. (PwC)
  
  
• 80% of companies believed that they offer good customer services, but only 8% of those surveyed said that brands provide good customer services. (Zippa)

How Important is Social Media for Customer Retention?

Social media is one of the most important tools for promotion. However, does it work? Know for yourself by knowing these social media statistics.

• 90% of buyers recommend a brand after seeing an ad for it on social media. (Zippia)
  
  
• Rookie mishaps on social media platforms can drive customers away. ( Neil Patel)
  
  
• 65% of the top 100 global Fortune companies use Twitter to make a connection with the audience. (Neil Patel)
  
  
• 63% of marketers think social media is the best customer retention tactic. (Statista)

What are Industry Focused Customer Retention Statistics?

Here are some of the best-known industry-focused customer retention statistics. 

• 75.5% is the average customer retention rate in all industries. (Zippia).
  
  
• Less than 20% is the average customer retention rate for most industries. (SurveySparrow)
  
  
• 34% of B2B companies focus on educating their customers regarding the optimized use of facilities and services. (Business2Community)
  
  
• An excited buyer starts purchasing 67% more after 31 to 36 months from the first purchase. ( Zippia)
  
  
• 50% of eCommerce customers share their good and bad service experiences on social media. (Sale Cycle)
  
  
• 92% of customers re-order from an eCommerce company that provides free shipping. (InvespCRO)
  
  
• 84% is the highest customer retention rate, and it is for the media and professional service industries. (Zippia)
  
  
• The retention rate for the hospitality industry is 55%, and it is the lowest. (Zippia)
  
  
• 45% of customers choose to eat at those restaurants, which makes them a part of the loyalty program. (Hospitality Technology)
  
  
• 63% is the customer retention rate for the retail industry. (Zippia)
  
  
• The average customer retention rate in the insurance industry is 84%. (Indio)
  
  
• On average, the insurance industry loses 16% of customers in a year. (Indio)
  
  
• 50-68% is the annual average customer retention rate for the SaaS industry. (Zippia)
  
  
• Among the bank clients, around 80% opt for a better offer given by a competitor. (ReviewTrackers)

Which is Better? Customer Retention or Customer Acquisition Statistics!

A popular belief is that getting a new customer is a must as they improve the sale. However, the statistics below will blow your mind away. Do read. 

• Retaining an old customer is 6 to 7 times cheaper than getting a new customer. (Zippia)
  
  
• 18% of companies prioritize customer retention over getting new customers. (Zippia)
  
  
• The chances of selling a product to an old customer are 60 to 70%, whereas, to a new customer, it is only 5 to 20%. (Zippia)
  
  
• 38% of businesses focus on customer retention and acquisition. Whereas 44% focus on customer acquisition. (Zippia)

What are Customer Churn Rate Statistics?

A customer churn-out rate estimates how many customers are no longer using a brand’s product. Most companies estimate an annual churn-out rate. However, some focused companies regularly track it to determine what changes they need to make to retain customers. Some of the very useful customer churn rate statistics are as follows: 

• 30% is the average churn rate in some of the global markets. (Deloitte)
  
  
• 18% is the churn rate in the travel industry. (Aspect)
  
  
• The average customer churn rate in the financial and cable industry is 25%. (Aspect)
  
  
• Companies lose $1.6 trillion when customers switch to another brand. (MARKINBLOG)
  
  
• 69% of customers shop more at those stores which offer better customer service. (Gravy Solutions)

What is the Best Mode for Customer Retention as per Stats?

If you want to improve your customer retention rate but don’t know how then have a look at the following statistics. 

• 63% of marketers believe that social media is the most effective customer retention tactic. (Statista) 
  
  
• 89% of marketers prefer email as the most effective way for customer retention. (Statista) 
  
  
• 55% of marketers prefer direct mail to contact customers for retention. (Statista) 
  
  
• 49% of marketers think online marketing, excluding social media and paid ads, is the best route for customer retention. (Statista) 

Few More Customer Retention Statistics 

Here are some extra customer retention statistics that will help you further. 

• On average, 10-25% of customers abandon a company in a year. (Zippia)
  
  
• 33% of companies proactively work on improving customer experience so retention can improve.
  
  
• 83% of customers don’t mind sharing their personal information with a company for personalization. (Accenture)

Conclusion

From these customer retention statistics, it is clear that valuing existing customers is essential. Customers can break or make a company and old customers are far more profitable than getting new ones. Keeping these in mind, companies should strategically plan campaigns and processes to retain customers. 

Another obvious thing is that the easiest way to retain a customer is by providing satisfactory products and services. The customer experience, not only with the product but with the company, plays a crucial role.
To leverage customer loyalty for your business, schedule a demo with our expert and get to know more about it.

FAQs

1. Is it profitable to invest in retaining a customer, or is focusing on getting new customers better?

The chances of selling products to old customers are 60 to 70%. Whereas, in the case of a new customer, the chances are only 5 to 20%. It has been seen that existing customers are 50% more likely to buy a new product. Statistics also show that they are 31% more willing to spend on new products.  

2. How does customer retention lead to profit?

A study by Bain & Company says a 5% improvement in customer retention can improve sales by 25 to 95%. Also, existing customers are more willing to make a second purchase if satisfied. 

3. What is a good customer retention rate?

For sure, 100% retention is best. However, it is not always possible. Also, a retention rate of below 15% is considered to be bad. Rest, a good customer retention rate varies from company to company.