July 19, 2022

16 Surprising Customer Retention Statistics Your Company Should Know

We compiled a list of customer retention statistics to demonstrate how effective customer retention strategies can distinguish successful brands from unprofitable ones. As the popular adage goes: retaining a customer is much cheaper than acquiring a new one. 

Your organization’s ability to meet consumer needs and expectations can help you establish and build customer relationships. it helps position your brand to retain current customers and increase wallet share.

Customer Retention Statistics

Leaders in high-growth organizations understand that customer retention helps them drive revenue, save money, and ensure future success.

  1. Loyal customers are worth up to 10 times more than their first purchase. (Martech Zone)
  2. 44% of businesses focus on customer acquisition, while only 18% focus on customer retention. (Semrush)
  3. A 5% increase in customer retention can increase company revenue by 25-95%. (Bain and Company)
  4. Loyal customers are 5 times more likely to repurchase, 5 times more likely to forgive, 4 times more likely to make a referral, and 7 times more likely to try a new offering than customers who are not loyal. (Temkin Group)
  5. It’s about 6 to 7 times more expensive to acquire a new customer than it is to retain an existing customer. (American Express)

Customer Experience and Customer Retention Statistics

Your organization’s ability to retain existing customers is often impacted by the type of customer experiences you deliver. With sound and effective customer experience management, you can build customer loyalty, increase customer lifetime value, and drive customer retention for your company.  

  1. 62% of US customers churned and moved to a different brand due to poor customer experience. (Martech Zone)
  2. 89% of consumers began doing business with a competitor following a poor customer experience. (Oracle)
  3. 85% of consumers churn because of poor service that could have been prevented. (Kolsky)
  4. It takes 12 positive customer experiences to make up for one negative experience. (FreshLime)
  5. 65% of American consumers say a positive experience is more important than great advertising. (PwC)
  6. 62% of customers feel the brands they are most loyal to are not doing enough to reward customer loyalty. (Martech Zone)

Online Reputation Management and Customer Retention Statistics

By delivering great customer experiences and staying responsive to customer needs and unsolicited feedback, you separate your brand from the competition and positively impact your bottom line.

  1. 52% of consumers who wrote online reviews telling other people not to buy products or services from a company did so because of a “bad customer service interaction.” (Statistics on Customer Reviews
  2. 96% of business leaders believe that customers tell others about their poor customer service experience. 29% reported that social media is the platform most likely to be used by customers to air their concerns. (The Northridge Group)
  3. 36% of consumers will share their customer service experience, whether good or bad. More than one-third report posting on Facebook, followed closely by Instagram. (CFI Group)
  4. 89% of customers agree that how a company acts during a crisis reveals its trustworthiness. (Salesforce)
  5. 45% of consumers say they’re more likely to visit a business if it knows how to respond to negative reviews. (Online Reviews Statistics)

Read more: How to Improve Customer Retention Through Social Media

Improve Your Customer Retention Today

It’s important to get started as soon as possible with making your customers happy and improving your customer retention rate. You can read our guide on customer retention strategies to discover the most effective ways of inspiring customer loyalty and driving retention.

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