23+ Customer Retention Statistics for Greater ROI in 2024

According to Loyalty One’s report, the companies that offer loyalty programs also found that these members spend two to three times as much as non-members.

(Loyalty One)

Note that retention rates are different for every industry. For example, bank customer retention statistics are very high, while in comparison, the hospitality industry rates, which are at 55%, are quite low.

(Statista)

One of the reasons behind this rise is the intense competition. Once, having an ebook or investing in paid ads was enough to keep you competitive, but now these tactics are almost everywhere.

However, for B2B subscription companies in niche markets, these costs rose by only 25 to 30%, most likely due to the difference in the very nature of company-client relationships between B2B and B2C companies.

(Profit Well)

In comparison, the global customer turnover rate is at 32%. However, a sizable chunk of the 1,600 leaders and experts polled by Sugar CM’s study are aware of this issue.

73% of polled leaders and experts believe they need to implement customer feedback, in order to improve their goods and services. 50% of the people polled also claim they do not understand their churn rates, and don't know how to deal with them.

Finally, 81% believe that one big issue might be a lack of regular and relevant communication between business and client.

(SugarCRM)

However, insurance customer retention statistics show that the industry average is 84%, which is very high. In fact, insurance is at the top of customer retention.

Take note, though, that a simple 5% increase in retention can double your profits over half a decade.

(InsuredMine)

And their 90-day retention rates are at 25%. But like any other metric, it depends on the industry, or rather, the type.

For example, mobile games have a retention rate of 27% after the first month and only 10% after 90 days. In comparison, media and entertainment apps have 43% after the first 30 days and 24% after 90.

(GeckoBoard)

In Q3 of 2022, eCommerce was responsible for 14.8% of all retail sales in the US. This is a substantial retail market segment, meaning competition will be tough.

For that reason, many successful companies keep an eye on their ecommerce retention rate. In fact, 50% of companies that have at least $11 million in annual revenue invest part of their budget into retention. For companies that make between $51 and $100 million in revenue, more than 62% do the same.

(Omni Convert)

The industry itself is segmented into customer management, worth $126 billion; customer engagement which is worth $151 billion; and tech and transaction enablers, worth $46 billion.

In fact, of the companies polled, most of them are investing anywhere between 2% and 4% of their total revenue into loyalty programs and customer relationship management.

(Loyalty One)

In fact, 25% of the customers who stopped doing business with their cable providers did so because of poor customer service. The same can be said for the financial/credit industry.

Data on the average churn rate by industry also shows that only 11% of customers who left big box electronic providers did so because of customer service. Another 24% did so when it comes to general retail as did 22% for online retail.

(Statista)

Further B2B customer retention statistics show that only 40% of executives are working on developing better reports and tools to improve these rates.

Still, B2B retention rates are high, most likely due to the effort these companies invest in order to develop their relationships. Furthermore, the nature of B2B business means they need to focus on the long term.

(Forrester)

For B2B, co-developing a product with a supplier is a very useful strategy, something that is almost impossible for B2C companies. B2B strategies are also much more long-term since by their very nature, most such companies have far fewer clients than B2C.

(McKinsey)

The large gap in said profit increase mostly depends on the industry, as well as the current state of a company. However, it still speaks volumes about customer retention importance.

(Tech Target)

48% think they will keep their customers better if they focus on digital and omnichannel access, while 45% claim ease of use is the most important aspect of improving their client retention rate.

Only 10% believe gamification is a vital part of loyalty programs, and only 12% believe the same for access to expert advice and assistance from humans. Furthermore, only 20% believe in building a community among consumers should be one of their priorities.

(Statista)

ECommerce is lagging when it comes to gathering data on retention rates. Less than 20% of the industry dedicates its resources to customer retention, a whopping 30% don't even know their retention rates, and only 42% of those that do track are satisfied with their numbers.

(Omni Convert)

And another 58% believe their current customer relationship management system is a waste of money, while 56% believe they don't have enough data to improve their marketing campaigns.

(SugarCRM)

Keeping retention rates high requires the efforts of multiple departments. Only 2% of the surveyed companies keep this data only to marketing and PR departments.

(Loyalty One)

Shopper loyalty retention and trends point towards the ever-increasing importance of social responsibility for consumers.

Some examples experts gave on how companies can show their social responsibility include having campaigns where part of their proceeds, for a specific month, will go directly to charity. They also recommended including consumers into the charity programs, by giving them the option to donate their loyalty program rewards.

(Customer Communications Group)

As another example, 85% of European shoppers said that poor delivery stops them from buyingfrom a specific retailer ever again.

(Hollingsworth)

Data on customer retention trends show that while 76% of consumers do not pay for loyalty programs they use, some of them would pay if said programs provided them with discounts, expedited shipping, as well as improved ear rates.

According to the companies surveyed in the Loyalty One report, more than half of them would consider implementing fee-based loyalty programs.

(Loyalty One)

Furthermore, acquiring new customers can cost anywhere between 5 to 10 times more than selling your products or your services to an existing one.

Focusing on return customers means you are creating recurring revenue, and in turn, a more stable and steady income stream.

(Bussines.com)

Furthermore, customer retention statistics and data show that 77% of brands could disappear overnight, and no one would care.

55% of consumers also believe that companies have a more important role in creating a better future than their movements.

(Vivendi)

Furthermore, 79% claim the actual products, or their quality, is the core reason, while 71% claim variety is the most important factor.

Data also shows that 62% of consumers are more likely to come back to a brand if the shopping experience is customized to their interests.

(Business Wire)

Loyalty to a brand is a foundational element of customer retention. Through loyalty, you also get free word-of-mouth marketing.

Furthermore, 39.4% of customers loyal to a certain brand will spend more on said brand, even if cheaper options exist.

(Yotpo)