How many times have you bought something from a brand more than once?
Or, let me ask you this way:
Do you have a specific brand in mind when you want to buy a particular item, for example, a pair of running shoes?
Very few will say yes.
Companies focus on getting new customers, but retaining them is a whole different story – and more difficult to achieve!
Although there are multiple strategies you must follow, the first thing you need to do is research to see
what customers want,
what they don’t want,
what complaints they have with business, and
why do they go back to specific brands?
The best way to do this is by reading customer retention statistics, and that’s what we have carefully curated in this blog.
Here are 50+ customer retention stats that’ll give you insight into a customer’s mind.
Why Customers Leave?
1. 1 in 3 customers will leave a brand they adore and never buy anything from them again if they go through one bad customer experience. (PwC)
Understanding the importance of bad customer experiences is crucial to a business. PwC did found out in a survey that it takes only one bad experience for customers to leave a company for good. So, it is essential to focus on customer experiences and thrive on making it better.
2. 68% of customers stop buying from companies as they believe the company is indifferent to them. (U.S Small Business Administration)
Every customer wishes to feel special. Once they feel that they don’t matter to a company or their problems are not taken seriously, they will leave. So, it is crucial to make every customer feel valued and treat their problem like your own to gain their trust.
3. 33% of customers stated that they left a brand because they lacked personalization. (Accenture)
Another reason customers leave a brand is that they don’t feel the company knows them. A simple “Hey Jack, how are you today?” goes a long way in making a good impression on your customer as opposed to saying “Welcome customer, how may I help you?” Give a personal touch to the customer conversations and leave an impression that makes them feel at home.
4. 47% of customers agree that they’ll abandon a brand if it doesn’t don’t offer an exceptional customer experience. (Microsoft)
Customers long for a good customer experience; they are very easily put off by bad experiences. Once they face a bad experience, they are reluctant to go for another purchase from the same company.
5. Customers are 4X more likely to buy a product from your competitor if they offer better customer service. (Bain & Co.)
Investing in customer service goes a long way in bringing in new customers and ensuring your current customers come back. Bain & Co. found that good customer service can actually increase the possibility of customers buying a product from your competitors if they offer better customer service.
Takeaway: It’s simple. If your business isn’t customer-centric, customers will leave your brand. Make customers your priority and decrease the possibility of them leaving your brand exponentially.
Why Your Customers Aren’t Loyal?
6. 12% of Americans state that they aren’t loyal to a specific brand as their customer service “lacks speed.” (Statistica)
Speed is the one factor that is most important when we talk about customer service. If you take days to resolve a customer’s query, they will leave. Statistica backs this statement with their survey that found out that 12% of Americans would leave a brand if they can’t offer “speedy” customer service.
7. 50% of customers agreed that they leave a company because the company fails to meet their needs. (InMoment)
Meeting the needs of your customers is the prime reason why customers become loyal to your brand. If you can’t meet their needs, they are bound to leave and not be loyal customers in the long run.
8. 55% of customers state that they trust companies far less than they used to. (Hubspot Research)
When it comes to trusting companies, it has been found that customers in today’s time are trusting companies far less than before. With numerous bad customer experiences, it is evident that customers will be more cautious in choosing which brand to stick to for future purchases.
9. Another study shows that 27% of Americans stated “lack of effectiveness” as one of the top reasons why they aren’t loyal to a brand. (Statistica)
Another reason that many customers leave a company is simply because they didn’t like what they heard from them. The solution you give to your customers makes a big impact on whether they will come back to your company for more. So, it is crucial to resolve customer queries effectively to ensure customer retention.
10. 84% of customers agreed that they won’t come back to a business if they’ve had a poor experience when returning a product. (Klarna)
When talking about customer experience, it is essential to ensure every process is smooth. One process that can make a big impact on your customers is returning a product. Klarna surveyed and found out that a whopping 84% of customers leave a brand if they face any issue in returning a product.
Takeaway: The reasons why customers aren’t loyal to a brand are product variety, customer service, and pricing. These three aspects drive customers to either make a purchase or keep looking for the perfect product/service. So research your competitors and always be a step ahead of them every step of the way.
Why Customers Come Back?
11. 67% of consumers stated that the one reason that makes them come back to business is a good customer experience. (ICSC)
Good customer experience impacts customers and leaves a mark every single time. ICSC backs up this by its survey that states how 67% of customers agreed that they returned to a brand only because of a delightful customer experience. So, ensuring that each and every customer has a good customer experience is crucial for improving customer retention.
12. 80% of consumers reported that they feel encouraged to come back to a brand or make first-time purchases if they are offered a discount or offer. (Inc)
Everyone loves discounts. So much so that an Inc survey revealed that 80% of customers are bound to come back or purchase from your brand for the first time if you offer great deals and discounts.
13. 31% of shoppers agreed that they would come back or return to a business if they have the option to pay for a product after they wish to keep it. (Klarna)
One factor that many companies fail to consider is the payment options they offer. The ideal way is to give your customers the option to pay for the product when they have seen and tried it. This way, your customers know they are choosing what they like and trust your brand instantly.
Takeaway: Treat your customers well, and they will come back to you. Every customer that buys a product from you must have a seamless experience without any hassles.
Customer Retention vs Customer Acquisition Statistics
14. A study revealed that brands end up spending 11X more on onboarding new customers than retaining the existing ones. (Brand Keys)
Companies are so focused on getting new customers that they completely overlook customer retention. A study by Brand Keys shows that companies spend 11 times more on onboarding customers than customer retention!
15. 82% of companies reported that customer retention is way cheaper than customer acquisition. (Econsultancy)
Although companies spend more on customer onboarding, it is seen that retaining one customer is, in fact, a lot cheaper than getting a new one. So, it is crucial to focus on customer retention and ensure you invest in retaining customers too.
16. A study revealed that the cost of acquiring a new customer is 5% more than retaining one. (Huify)
Talking about how expensive onboarding a customer is than retaining one, Huify gave us a clear picture. According to their survey, getting a new customer is 5% more expensive than retaining one.
17. 44% of companies agreed that their main focus in on customer acquisition, but only 18% of companies focus on customer retention. The remaining companies say they focus on both equally. (Huify)
Huify also surveyed the company percentages and how many actually focus on customer acquisition and retention. They found out that 44% of companies are solely focusing on getting new customers, while only 18% solely focus on customer retention. The remaining 38% of companies focus on both acquisition and retention equally – which is the ideal scenario.
Takeaway: Customer acquisition is important, but retention is crucial for a company. Acquiring a new customer ensures one purchase, but retaining one customer can ensure a lifetime of purchases.
Customer Service Affecting Customer Retention
Customer loyalty and customer service go hand in hand. Microsoft clears all doubts with their survey that showed how 69% of customers agreed that customer service is a very important factor in driving customer loyalty.
19. 89% of customers agree they will take their business to competitors right after experiencing bad customer service. (Harris Interactive)
One bad customer experience and your customers walk out the door – without any warning! Understanding the importance of customer service and how one bad experience can reduce customer retention is the starting step towards becoming a customer-centric business.
20. 66% of customers agreed that they switched brands because of poor customer service. (Harris Interactive)
Poor customer service drives customers away. This research makes it all the more clear. Harris Interactive’s research showed that 66% of customers leave a brand, and the underlying reason is poor customer service.
Takeaway: One poor customer service experience drives customers away. So it is crucial to understand how important it is to deliver delightful customer service to increase customer retention.
B2B Customer Retention Statistics
21. In 2018, the top priorities for brand marketers were customer experience or journey (25%), complete brand awareness (18%), customer acquisition (18%), customer loyalty or retention (17%), and customer engagement (15%). (MarketingCharts)
Brand marketers need to plan their strategies before actually implementing them. In this process, it is crucial they understand what business factor they would focus on more than the others. MarketingCharts conducted a survey that showed the hierarchy as customer journey > brand awareness > customer acquisition > customer retention/loyalty > customer engagement.
22. 70% of companies reported that they focus on improving client experience because they expect more personalization. On the other hand, 60% of companies want to increase customer loyalty. (Winterberry Group)
Understanding the different parameters of customer service and investing in all of them equally is the ideal scenario that companies must follow. But, according to a Winterberry Group study, it was revealed that 70% of companies focus on improving customer experience, whereas 60% of companies focus on customer loyalty.
23. Delightful customer experience is a major competitive advantage and is predicted to become the primary brand differentiator, overtaking product and price, for B2B sales by 2020. (Walker Info)
By 2020, product quality and price will not be the key differentiator between brands. Everything is available online from different vendors. According to Walker Info, the key differentiator between brands will become their customer service.
Takeaway: Understanding the importance of customer service parameters, especially in B2B companies, is essential for customer retention.
Importance of Customer Retention Statistics
24. 77% of customers reported that they have maintained strong relationships with specific brands for over 10 years. (InMoment)
Customer retention is what makes businesses stay alive. Staying in business with a customer for a long time is far more profitable than onboarding a new customer. InMoment showed in a survey that 77% of customers have strong relationships with specific brands for as long as 10 years. Imagine the business they got from these customers!
25. 60% of customers agree that they purchase more frequently from companies that they prefer. (InMoment)
Customers build an impression of brands on the basis of customer service offered. Mostly, customers will purchase a product from a specific brand only because they prefer their services. 60% of customers agree to this fact.
26. 70% of customers recommend a brand to their friends or family more often if it offers a quality loyalty program. (Brand Loyalty)
The loyalty program is a great way to improve customer retention and loyalty. In the long run, companies that offer a loyalty program also help in improving customer acquisition. Brand Loyalty states in their survey that 70% of customers will recommend brands to their loved ones provided it offers good loyalty programs.
Takeaway: Customer retention is crucial for a business. Investing in a well-designed loyalty program that focuses on building strong relationships with your customers can ensure that you are always #1.
Customer Retention Profitability Statistics
27. Companies reported a 25% to 95% increase in profits by increasing customer retention by 5%. (SmallBizTrends)
Focusing on customer retention increases business profits exponentially. A SmallBizTrends report showed that companies saw an increase in profits from 25% to 95% just by increasing customer retention by 5%!
28. Brands reported a 306% higher lifetime value of customers who felt they had an emotional connection with the company. (Motista)
Making a connection with a customer is one of the best ways to create loyal customers. Getting a lifetime value from your customers exponentially increases your chances to improve business profits and overall customer retention.
29. 1 in 3 customers agreed that they will pay more if they receive a higher level of customer service. (Genesys)
Customer service can also drive customers to pay more than required – only to get a solution that works more in their favor. A Genesys survey showed that 1 in 3 customers are willing to pay more for exceptional customer service.
Takeaway: Customer retention not only improves your brand’s name and value but also increases company profits significantly.
Customer Retention Marketing Statistics
30. 36% of US retail professionals said organic search drives customer retention. (SmallBizTrends)
Organic searches are far more important than perceived. Not only do they give an idea of brand awareness, but they also drive customer retention. So, it is essential to understand first of all how customer retention can be achieved via organic searches and start working towards it with a plan.
31. 43% of American retail companies stated that they believe paid search drives customer retention. (SmallBizTrends)
Along with organic searches, a number of companies also stated that paid search drives customer retention. A SmallBizTrends survey showed that 43% of companies invest in paid searches with the intention of increasing customer retention.
32. 80% of companies reported that they rely on email marketing for customer retention. (eMarketer)
Another way companies focus on customer retention is email marketing. Email marketing is one of the most powerful and instant ways to retain customers easily. For this, you need to have an email marketing strategy in place and know the current trend for email campaigns.
33. 37% of American retailers reported that retargeting improves the chances of customer retention. (SmallBizTrends)
There are a lot of SEO strategies that help improve customer retention, and retargeting is one of them. Not a well-known fact, but 37% of companies actually use retargeting as an SEO strategy to improve their chances of customer retention and loyalty.
34. 21% of American retailers agree that affiliates increase customer retention. (SmallBizTrends)
Employee rewards boost productivity in the long run. That’s why 21% of American retailers agree that affiliate marketing is one of the best ways to increase customer retention. Also, it improves employee productivity and ensures every employee is happy with the organization.
35. 56% of companies agreed that they preferred email marketing as the best and most effective method to reach customer retention goals. (eMarketer)
Many companies still agree that their preferred and most effective method to increase customer retention is email marketing. So, create an email list and send emails to your existing customers on a regular basis to improve the chances of retention.
36. 18% of American retailers reported that referral marketing improves customer retention. (SmallBizTrends)
Referral marketing is another very popular way to ensure customer retention. As rewarding employees goes a long way, so does reward your customers. Set a reward for customers who bring in new customers for your brand. This way, they are motivated to come back to your brand and also increase your customer base. It’s a win-win!
Takeaway: Leveraging online marketing strategies helps improve customer retention exponentially.
Mobile Customer Retention Statistics
37. The number 1 driver for consumers to use their mobile wallets is promotions. (BusinessWire)
Mobile wallets are gaining popularity nowadays. Everyone uses at least one mobile wallet for their daily transactions. According to BusinessWire, the main driver for people to use mobile wallets is promotions.
38. 90% of customers felt that they will have a poor customer experience if they seek support on their mobile phones. (SoftwareAdvice)
Providing exceptional customer support is crucial, no matter which platform you use. Whether you send a text to a support agent or call them up on their toll-free number, it is essential to ensure that you offer delightful customer service. Still, 90% of customers are under the impression that they will definitely experience bad customer support via mobiles.
39. 75% of consumers agreed that they would engage more with companies that offer loyalty programs that are mobile-friendly. (CodeBroker)
Making your website mobile-friendly is crucial. Nowadays, everyone looks up everything on their phone, so it is essential to design all elements of your website and ensure they are mobile-friendly. This also includes how you display loyalty programs on your website or app.
40. 85% of customers who are part of a loyalty program and have redeemed them using their mobile phones agreed that technology improved their overall experience. (GlobeNewswire)
Technology is one of the most important drivers of customer satisfaction. If your company leverages technology and makes the entire customer experience journey better, then customers are more likely to choose your brand. The same goes for your loyalty program participation.
41. 56% of customers stated that they use mobile phones to research a product or service before finalizing their decision. (Hawk Incentives)
It’s not just about asking a friend for a product recommendation anymore. With handy mobile phones offering information within easy reach, buyers instinctively do research on features, pricing, and alternatives of a product or service before making the decision to buy. If the information on your product or service isn’t displayed properly on their device, it won’t take them a long time to move on.
Takeaway: Everything needs to be mobile-friendly. If your website or payment gateway isn’t optimized for all mobile devices, your customers will not engage with you in the future.
Customer Retention Through Social Media
42. Companies are investing in omnichannel customer experiences, so much so that in 2018, the number of companies investing in this venture increased from 20% to 80%. (PwC)
Omnichannel experiences are gaining popularity in today’s world. So much so that in the year 2018, companies investing in this experience increased from 20% to 80%! The investing percentages only give an idea of how important it is for companies to start thinking about investing in omnichannel experiences.
43. 31% of customers agreed that they reach out to companies using their Twitter accounts. (Forrester)
Twitter is becoming the #1 social media platform to bridge gaps between customers and companies. Forrester’s study shows that 31% of customers agree that they prefer connecting with companies through their Twitter accounts as opposed to the traditional ways.
44. 1/3rd of Americans use social media platforms to complain about a brand or their customer experience. (Microsoft)
Social media has become a hub for customer complaints. Every customer turns to their social media account and posts something regarding their customer experience – and usually, it is about the bad experiences only.
Takeaway: Social media is a booming platform, especially when it comes to retailers and their reputation. It is one of the most common platforms used by customers to complain about retailers. So, social media plays a vital role in a customer’s perception of a brand and whether they do, in fact, come back to your brand in the future.
Customer Retention & Engagement
45. 61% of customers reported that they are more likely to engage with a brand if they offer surprise gifts, offers, or discounts. (Merkle)
Customers engage with companies only if they are getting something. Merkle clears the doubt here via their study that shows that 61% of customers agree that they engage with companies that offer surprise offers, gifts, or discounts.
46. 45% of customers agree that they would engage with brands if they can address their problems or answer their questions instantly. (Merkle)
The time taken for customer agents to resolve customer queries is a key factor that affects customers. As cited by Merkle, customers are more likely to engage with brands if they can resolve their queries instantly.
Takeaway: Engaging with customers is a sure-shot way for them to come back to you, provided the conversation is not biased. If you don’t empathize with the customer, they surely will not come back to you for a second purchase.
Customer Retention & Loyalty
47. Engaged customers are 5X more likely to buy from the same brand in the future. (Rosetta Consulting)
Customer engagement, retention, and loyalty go hand in hand. Only if your customers are engaged will they be likely to purchase something from your brand in the future. To put a number on it, they are 5 times more likely to buy from your brand.
48. 50% of consumers reported that their loyalty to a brand depends on the brand and the quality of their products and services. (InMoment)
Brand name, value, and products and services are major concerns for customers. These factors are the driving factors for customers to choose a company and stay loyal to them in the long run. So, it is essential for you to focus on product and service quality as well as your brand name.
49. 37% of customers agreed that they will pay a fee for a more advanced tier of loyalty program memberships. (Bond)
Loyalty programs have a level, and the higher the level the more your customers are willing to pay for the same. It is all about receiving better surprise gifts, better service, and more. As loyal customers, this keeps them engaged.
Takeaway: Customer retention and loyalty go hand-in-hand. Only when you retain a customer can they become loyal to your brand. So, it is essential to focus on customer retention strategies to increase customer loyalty.
Live Chat & Customer Retention Statistics
50. 52% of customer service teams reported that they use live chat software. And, 81% of customers reported that they prefer to connect with a support agent using live support for resolving their query. (Salesforce)
Instant customer support is essential for customers in today’s time. So, it is crucial for your company to deploy live chat software that offers all the needed features to offer delightful customer support.
51. 63% of customers agreed that they were delighted that their questions were answers using live chat software. (Forrester)
Experiencing customer support via live chat software is completely different than talking to a support agent on the phone. The experience is smooth, flawless, and not at all time-consuming. So, a lot of customers are delighted with such an experience.
Takeaway: The one thing customers don’t have is time. Deploying live chat software ensures that all customer queries are answered in time and with accuracy. This way, not only are your customers impressed with your customer service; they will come back and recommend you to their friends and family too.
The Billion Dollar Question: How to Retain Customers?
No matter which industry you cater to, retaining customers is crucial for a business to be successful. According to Mixpanel’s 2017 Product Benchmarks report, the average customer retention rate by industry was below 20%.
But, how to retain customers when every company in the market is trying to be the best at everything?
Along with taking some pointers with the statistics mentioned in this blog, it is important to draft a customer retention strategy and ensure you implement it efficiently.
The best way to increase customer retention is to give importance to them. Hear them out. Talk to them. Build a relationship with them. And, most importantly, ask where you can improve.
No matter how small or big a company is, if it’s willing to accept its faults and come up with an alternative solution, the customer will come back — every single time.
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