No matter your industry or what your business is selling, without its customers, it would go under – fast.
Once you have a solid customer base, it’s crucial that you create the necessary steps for a strong customer retention strategy that will help you build loyal customers, so you’re able to keep them around for the long haul.
59 customer retention statistics you should know
Doing so is easier said than done, as creating the necessary momentum needed for brand advocates takes hard work. You need more than just a great product. You need great customer service, an easy to navigate website, and a strong customer experience that delights everyone who encounters your business.
If you need more convincing as to why customer retention is so important, check out these 59 statistics.
Profit and customer retention statistics
Is your company losing out on a profit because there isn’t a customer retention strategy in place? You could be missing out on more money than you even realize.
Increasing customer retention by just 5% boosts profits by 25% to 95%. (SmallBizGenius)
The Pareto Principle shows 80% of your profits come from just 20% of customers. (Forbes)
65% of a company’s business comes from existing customers. (SmallBizGenius)
The probability of selling to an existing customer is 60-70%. For new customers, that figure drops to 5-20%. (Altfield)
is lost by U.S. companies per year due to avoidable consumer switching.
82% of companies agree that retention is cheaper than acquisition. (SmallBizGenius)
Businesses lost $75 billion in revenue due to poor customer service in 2018. (Forbes)
Over $62 billion is lost annually by American companies due to poor customer service. (New Voice Media)
A 5% increase in customer retention correlates with at least a 25% increase in profit. (Bain & Company)
Loyalty program statistics
A loyalty program can not only establish a customer base but also create a platform for meaningful customer engagement. While there are many types of loyalty programs you can choose from, doing so can make a big difference in how your customers view your business.
Over 70% of consumers are more likely to recommend a brand if it has a good loyalty program. (Bond)
58.7% of internet users believe earning rewards and loyalty points is one of the most valued aspects of the shopping experience. (Emarketer)
of U.S. adults belong to at least one loyalty program.
56% of customers stay loyal to brands that “get them”. (SmallBizGenius)
50% of U.S. consumers have left a brand they were loyal to for a competitor that better met their needs. (HubSpot)
Members of loyalty programs spend 12-18% more per year than other customers. (Fundera)
52% of American customers will join a loyalty program with a preferred company. (Yotpo)
Customer service statistics
When a customer has a question, a concern regarding their product, or needed to get in contact with a representative of any kind, how quickly does your team respond? Is someone going above and beyond to turn an unhappy customer into a happy one? Doing so can go a long way.
86% of customers say an emotional connection with a customer service agent would make them continue to do business with the company. (Forbes)
54% of consumers say they’ve had at least one bad customer service experience in the last month. (HubSpot)
69% of U.S. consumers say customer service is very important when it comes to their loyalty to a brand. (Microsoft)
45% of women avoid vendors for 2+ years after having a bad customer service experience. (Zendesk)
of consumers are more likely to make repeat purchases at companies with excellent customer service.
37% of consumers would like companies to apologize when service does not live up to expectations. (CallMiner)
67% of customer churn could be avoided if the business resolved the customer’s issue during their first interaction. (Kolsky)
74% of millennials will switch to a different retailer if they receive poor customer service. (BusinessWire)
90% of millennials prefer smartphones for customer service/support interactions. (Genesys)
Faced with poor customer service, 20% of consumers would complain publicly via social media. (New Voice Media)
82% of consumers have stopped doing business with a company because of bad customer service. (Zendesk)
Only slightly more than 10% of consumers are willing to stay on the line for over five minutes for customer service. (HubSpot)
83% of U.S. clients prefer to deal with humans, rather than digital channels, when it comes to customer service issues. (Accenture)
66% of B2B customers stopped buying after a bad customer service experience. (Zendesk)
52% of consumers have purchased more from a company after having a positive customer service experience. (Kolsky)
Personal data statistics
From home addresses to credit card information, customers hand your business their personal data all the time. Make sure your business is keeping it safe, otherwise they could choose your competitor the next time they’re interested in making a purchase.
87% of Americans are willing to have various details of their activity tracked in exchange for more personalized rewards and brand experiences. (Bond)
68% of consumers believe it’s important for businesses to tailor experiences based on the client’s tastes and preferences. (Oracle)
56% of American consumers are not confident that brands have their best interests in mind when they use, share, or store their personal data. (Acquia)
of U.S. consumers say they'd share more personal information with a company that offers a great experience.
When your organization takes the extra step to truly understand what your customers want, the questions they have, and how they interact with your products and services, you can build a brand that keeps them coming back for more. Show your customers that you appreciate them and put their needs first, and you’ll find that you retain them for the long haul.
When you’re looking for ways to connect with your customers, learn how G2 Seller Solutions can make it easier to connect with your current customers and our community of 5 million software buyers – and counting.
Mara is a Senior Content Marketing Specialist at G2. In her spare time, she's either at the gym, reading a book from her overcrowded bookshelf, enjoying the great outdoors with her rescue dog Zeke, or right in the middle of a Netflix binge. Obsessions include the Chicago Cubs, Harry Potter, and all of the Italian food imaginable. (she/her/hers)
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