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59 Eye-Opening Customer Retention Statistics to Know in 2020

September 18, 2020

customer review statistics@2x

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)

$136.8 billion

is lost by U.S. companies per year due to avoidable consumer switching.

Source: CallMiner


  • 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)

72%

of U.S. adults belong to at least one loyalty program.

Source: Oracle


  • 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)

93%

of consumers are more likely to make repeat purchases at companies with excellent customer service.

Source: HubSpot


  • 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)

63%

of U.S. consumers say they'd share more personal information with a company that offers a great experience. 

Source: PWC


  • 83% of consumers are willing to share personal information to enable personalization. (Accenture)

Customer experience statistics

As soon as a customer engaged with your business, their experience with your brand. Be sure it’s a positive one.

  • 34% of consumers will never buy from a brand after just one bad experience. (Oracle)
  • Customers with an emotional relationship with a brand have a 306% higher lifetime value and will recommend the company at a rate of 71%, rather than the average rate of 45%. (Motista)
  • 71% of customers confirm they want a consistent experience across channels, but only 29% say they get it.  (Forbes)
  • After having a positive experience with a company, 77% of customers would recommend it to a friend. (XM Institute)
  • 89% of customers begin business with a competitor following a poor customer experience. (Oracle)
  • Only 19% of businesses report that they have a dedicated customer experience team to manage the experience. (Genesys)
  • 41% of consumers, and almost half of Millennials (47%), agree to pay up to 20% more for exciting customer experience. (Oracle)
  • Companies with great experiences have a 16% price premium on products and services. (PWC)
  • Following a negative customer interaction, 58% of Americans would never use that company again. (New Voice Media)
  • 66% of American consumers say positive personal experiences are more influential to them than great advertising. (PWC)

48%

of all consumers have left a business' website and made a purchase elsewhere because the experience was poorly curated.

Source: Accenture


  • 56% of consumers say that ‘the overall enjoyment of their experience’ is important in their decision to buy a product or service. (Deloitte)
  • 80% of American consumers point to speed, convenience, knowledgeable help, and friendly service as the most important elements of positive customer experience. (PWC)
  • 67% of customers say their standard for good experiences are higher than they’ve ever been. (Salesforce)
  • 32% of customers stop doing business with a brand they love after only one bad experience. (PWC)
  • 77% of the consumers and 60% of millennials say they’ve held relationships with specific brands for over 10 years. (InMoment)
  • 66% of customers say they’ll pay more for a great experience (82% for businesses). (Salesforce)

Marketing channel statistics

From social media to email campaigns, they all play a part in how you retain your customers and pique their interest in more ways than one.

  • 65% of customers ages 18-34 feel social media platforms are an effective channel for customer service. (Microsoft)
  • About 80% of businesses still rely on email marketing to assist with maintaining their client retention rate. (Emarsys)
  • 69% of US consumers do not trust advertisements. (HubSpot)
  • 65% of U.S. customers find a positive experience with a brand to be more influential than great advertising. (PWC)

57%

of people won't recommend a business if the website doesn't have a well-designed mobile version.

Source: Sweor


Going the extra mile

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.

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