85 Customer Retention Statistics
Customer loyalty and customer retention are closely intertwined, so in this article we’ll go over 40 customer loyalty statistics and 45 customer retention statistics you should know in 2021.
The practice and art of retaining clients who have previously bought from you is known as retention marketing.
They've taken the initial major step and committed some of their precious funds to your product or service. Now it makes sense to see whether they'll go further with you rather than look elsewhere. Customers that have returned generally make more purchases from businesses over time, lowering operating costs while also ensuring pleased repeat customers who are more likely to promote you to others.
Why Customer Retention is Important
The power of statistics is often self-evident, which you'll see later in this blog. Here are three reasons why customer retention is crucial:
1. Retaining customers is less resource intensive than acquiring new ones. You won't have to invest as much in marketing or sales the next time a customer intends to buy from you. This can help your bottom line, especially if it means reducing advertising costs. When budget is limited and needs to be stretched as far as possible, retention marketing is a very attractive option for tech companies. Especially with loyalty program software that makes it easy to set up and manage loyalty programs.
2. Your existing customers already know your brand and can give you valuable feedback on how to improve your products or services. You'll probably have an idea of what they want but it's unlikely that your business has everything completely figured out yet even if you have a few successful products. Going back to what makes them tick is often more efficient than searching for entirely new market segments where there's no guarantee that they will respond as well.
3. It costs five times more to acquire a new customer than it does to retain an existing one, which justifies spending more on their satisfaction. When customers are happy, they're likely to return and buy more from you. Customers that aren't treated as well may move on after one transaction and never return.
40 Customer Loyalty Statistics
- Brands which are meaningful and viewed as making the world a better place outperform the stock market by 134%. ( Vivendi )
- 81% of Americans say businesses are meeting or exceeding their expectations for service. ( Business Wire )
- 54% of consumers say they’ve had at least one bad customer service experience in the last month. ( HubSpot )
- 69% of US marketers believe technology has made it harder for them to offer customers personalized experiences. ( Acquia )
- 65% of customers aged 18-34 feel social media platforms are an effective channel for customer service. ( Microsoft )
- 56% of programs employ game mechanics in their loyalty programs. ( AP News )
- Satisfied US customers will share their positive experience with 11 different people. ( Business Wire )
- 69% of US consumers do not trust advertisements. ( HubSpot )
- 50% of US consumers have left a brand they were loyal to for a competitor that better met their needs. ( HubSpot )
- 77% of consumers say they stayed loyal to specific brands for 10 years or more. ( InMoment )
- 74% of millenials will switch to a different retailer if they receive poor customer service. ( Business Wire )
- 37% of consumers feel they need at least five purchases to consider themselves loyal to a brand. ( Yotpo )
- 90.2% of US consumers feel equally or more loyal to a brand than they were a year ago. ( Yotpo )
- 55.3% of consumers stay loyal to a brand because they love the product. ( Yotpo )
- 61% of consumers think surprise gifts and offers are the most important way a brand can interact with them. ( AP News )
- 48% of people expect specialized treatment for being a good customer. ( Accenture )
- 69% of US consumers say customer service is very important when it comes to their loyalty to a brand. ( Microsoft )
- A billion dollar company will earn $775 million over three years on average due to quality customer experience. ( Experience Matters )
- 58.7% of internet users believe earning rewards and loyalty points is one of the most valued aspects of the shopping experience. ( eMarketer )
- Revenues for businesses that prioritize customer service rise 4-8% above their market. ( Bain )
- Globally, 67% of consumers feel like customer service is improving. ( Microsoft )
- 60% of brand-created content is failing to deliver. ( Havas )
- The probability of selling to an existing customer is 60-70%. ( Altfeld )
- 93% of consumers are more likely to make repeat purchases at companies with excellent customer service. ( HubSpot )
- 56% of US consumers are not confident that brands have their best interests in mind when they use, share, or store their personal data. ( Acquia )
- 80% of businesses still rely on email marketing to assist with maintaining their client retention rate. ( Emarsys )
- In 2018, the top three brands by customer loyalty were Amazon, Google, and Apple. ( Brand Keys )
- 87% of Americans are willing to have various details of their activity tracked in exchange for more personalized rewards and brand experiences. ( Bond )
- 77% of brands could disappear, and no one would care. ( Vivendi )
- 90% of US consumers prefer national brands to store or local brands. ( Business Wire )
- 77% of consumers say they favor brands that ask for and accept customer feedback. ( Microsoft )
- Businesses lost $75 billion in revenue due to poor customer service in 2018. ( Forbes )
- 75% of consumers expect brands to make more of a contribution to their well-being and quality of life. ( Havas )
- The Pareto Principle shows 80% of your profits come from just 20% of customers. ( Forbes )
- 86% of customers say an emotional connection with a customer service agent would make them continue to do business with the company. ( Forbes )
- Over 70% of consumers are more likely to recommend a brand if it has a good loyalty program. ( Bond )
- More than 50% of Americans have cancelled a purchase because of bad service. ( Business Wire )
- 72% of US adults belong to at least one loyalty program. ( Oracle )
- 95% of loyalty program members want to engage with their brand’s program through new and emerging technologies. ( Bond )
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45 Customer Retention Statistics
- 78% of shoppers will buy more in the long run if a retailer has free returns. ( Klarna )
- 84% won’t come back to a retailer if they’ve had a poor experience returning a product. ( Klarna )
- 42% of consumers report that a negative experience with sales staff is the single factor most likely to cause them to abandon a retailer forever. ( Cision )
- 55% of consumers believe companies have a more important role than governments in creating a better future. ( Havas )
- Google, PayPal, Mercedes-Benz, and WhatsApp were among the top 10 Havas Group “meaningful brands” for 2019. ( Havas )
- A 5% increase in retention rate can increase profits by as much as 95%. ( Reichheld & Schefter )
- Casual gaming apps have retention rates of 3.5% for 30 days. ( Wappier )
- 80% of shoppers are more likely to keep purchasing from brands that offer a personalized experience. ( Epsilon )
- 60% of loyal customers purchase more frequently from their preferred companies. ( InMoment )
- Meaningful brands outperform the stock market by 134%. ( Havas )
- 70% of consumers are more likely to recommend a brand with a quality loyalty program. ( Brand Loyalty )
- Customers who have an emotional relationship with a brand have a 306% higher lifetime value. ( Motista )
- Of companies that surpassed their revenue goals in 2018, 77% had a documented personalization strategy, while 74% had a budget for executing the strategy. ( Monetate )
- 31% of shoppers would be more likely to buy something if they could pay for it after they have decided to keep it. ( Klarna )
- 61% of shoppers would stop purchasing from a retailer if it had flawed website functionality. ( Klarna )
- In 2019, the average retention rate for mobile app users was 32%. ( Statista )
- 75% of consumers are more likely to engage with a business if they offer loyalty programs they can easily access from a smartphone. ( Code Broker )
- Shoppers with an emotional connection to a brand have a lifetime value four times higher than the average customer’s. ( Motista )
- Only 42% of companies can measure customer lifetime value. ( Econsultancy )
- Only 28% of small businesses plan to allocate a majority of their marketing budget to customer retention. ( Belly )
- 37% of American customers start to feel loyal to a company after five or more purchases. (Yotpo)
- 43% of loyal customers spend more money to support brands they like ( Fundera )
- Addressing a problem or question is the top engagement strategy for 45% of customers. ( Merkle )
- 47% of consumers won't engage with a business after a moment of brand disappointment. ( Accenture )
- 55% of online shoppers abandon their carts and never return to the retailer’s site. ( Cision )
- Acquiring a new customer costs as much as five times more than retaining an existing customer. ( Invesp )
- 77% of brands could disappear and no one would care. ( Havas )
- Offering loyalty points and discounts to customers improves retention by as much as 53% ( 16Best )
- Referral marketing accounts for 26% of customer retention. ( Invesp )
- 95% of loyalty program members want to engage with the programs via cutting-edge technology. ( Brand Loyalty )
- 13% of unsatisfied customers will tell 15 or more people about their lousy customer experience. ( ThinkJar )
- SaaS firms focusing on smaller companies have customer churn rates of 3-5% per month. ( Qualtrics )
- 33% of American customers say they'll consider switching companies immediately following a single instance of poor service. ( American Express )
- 77% of shoppers claim they’ve held relationships with specific brands for 10 or more years. ( InMoment )
- 89% of companies consider superior customer service an essential customer retention element. ( Semrush )
- Highly engaged customers buy 90% more often and pay 60% more per transaction. ( Rosetta Consulting )
- Only 9% of consumers said social media was their preferred way to engage with brands. ( Merkle )
- Surprise offers or gifts are the best ways to engage 61% of customers. ( Merkle )
- 58% of consumers say their number-one reason for shopping-cart abandonment is high shipping costs. ( Cision )
- 44% of companies admit they have “a greater focus” on customer acquisition, while 18% concentrate on retention. The rest say they focus on both equally. ( Invesp )
- 67% of consumers said good customer experience encourages them to stay longer or spend more money. ( Forbes )
- 37% of customers are willing to pay a fee for an enhanced tier of membership in loyalty programs. ( Brand Loyalty )
- The top 10% of your customer base is probably spending three times more than your average customer. ( Adobe )
- 13% of unhappy customers will tell more than 20 people about their poor experience. ( Customer Thermometer )
- Customers are 5x more likely to keep buying from the same brand in the future the more engaged they are. ( Rosetta Consulting )
Build your customer referral program without the dev time
Sign up for a free trial of GrowSurf to lower your customer acquisition costs, increase customer loyalty, and save gobs of time.
