![65 Customer Retention Statistics You Need to Know in 2024 65 Customer Retention Statistics You Need to Know in 2024](https://static.semrush.com/blog/uploads/media/1d/ce/1dcedbc4a7c64025e6f0e4ab58d6c997/0%20temp.png)
Holding on to customers is a top priority for most businesses. And it’s much easier to do that when you truly understand what your customers want and expect from your business.
Customer retention stats offer valuable insights into customer expectations, preferences, and behavior. They reveal the common factors that keep customers coming back and what tends to drive them away.
In this article, we’ll share 65 of the most important customer retention statistics.
The more you align your business strategies and services with these insights, the higher your chances of delivering a stellar customer experience and building a strong base of loyal, repeat buyers.
Key Takeaways
The customer retention statistics we’ll discuss below highlight several important points, including:
- Customer retention costs significantly less than acquiring new customers
- Existing customers tend to spend more (and more often) than new customers
- Improving customer experience is a major driver of customer loyalty
- A well-structured loyalty program can be highly effective at enhancing customer retention and increasing sales
- Customer retention rates vary significantly across different industries
With these important points in mind, let’s dive into the numbers.
General Customer Retention Statistics
The statistics below provide an overview of the costs involved in customer retention, and shed some light on repeat customer buying habits:
- Customer churn costs U.S. providers $168 billion per year (CallMiner)
- U.S. companies could save over $35 billion per year by focusing on keeping their existing customers happy (CallMiner)
- In 2013, ecommerce businesses paid an average of $9 to acquire a new customer. By 2022, this had risen to $29 (a 222% increase). (SimplicityDX)
- Businesses have a 60% to 70% chance of selling to an existing customer, while for a new prospect it’s just 5% to 20% (Forbes, quoting the book “Marketing Metrics”)
- Repeat customers spend 67% more than new customers (BIA Advisory Services)
- Some 52% of customers have gone out of their way to buy from their favorite brand (Zendesk)
- Two-fifths of companies place an equal focus on customer retention and acquisition (Invesp)
- As much as 44% of companies still don’t calculate their customer retention rate (CustomerGauge)
- Almost three-quarters of consumers feel loyalty towards a particular brand or company (Zendesk)
- Over 55% of consumers are loyal to a brand because they love the product (Yotpo)
- A third of consumers say it takes three purchases to create brand loyalty (Yotpo)
Impact of Customer Retention on Profits
Perhaps the most important impact customer retention can have on a business involves its profits. The statistics below illustrate the power of customer retention on a business’s bottom line:
- Some 84% of companies that work to improve customer experience notice an uplift in revenue (Dimension Data)
- Customer retention is vital for the 61% of small businesses that say over half their revenue comes from repeat customers (BIA Advisory Services)
- Small ecommerce businesses generate 35% of their revenue from the top 5% of loyal, repeat customers (Smile.io)
- After buying from your online store for the first time, a customer has a 27% chance of buying again. After a second purchase, there’s a 49% chance they’ll buy again. And after a third purchase, the likelihood increases to 62%. (Smile.io)
Image Source: Smile.io