57 Customer Retention Statistics You Should Know in 2025

The businesses that win in the long run are those that turn first-time buyers into loyal, repeat customers.

Understanding customer retention statistics can give you invaluable insights into consumer behavior and help shape strategies that foster loyalty, reduce churn, and maximize lifetime value.

Uncover why customers stay, why they leave, and how you can keep them coming back for more with these 57 stats on customer retention. 

Table of Contents

1. Why is customer retention important?
2. General statistics on customer retention
   • 1. Acquiring a new customer is 5x as expensive as retaining an existing one
   • 2. Customer churn costs U.S. providers more than $150 billion per year
   • 3. The “acceptable” SaaS churn rate is 5% to 7% every year
   • 5. More than 55% of consumers are loyal to a brand because they love the product
   • 6. Brands that incorporate gamification into loyalty strategies see a 22% increase in brand loyalty 
   • 7. More than 80% of customers prefer companies that provide personalized experiences
3. Statistics on loyalty programs for customer retention
4. Customer retention statistics based on customer service
5. Facts about customer retention from customer experience
6. Average customer retention rates per industry
7. QR codes: The best customer retention tool you need
8. Keep the right customers around with the help of QR TIGER
9. FAQ

Why is customer retention important?

The better the customer retention rate, the more it shows how loyal your customers are. 

Having repeat buyers and clients tells you that your goods and services are more than able to fulfill their needs and wants. Contributing to customer success stories encourages them to always choose your products and services over others. 

Good customer retention also means an increase in revenue. A 5% increase in customer retention rate can increase profits to 95% over time. 

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Moreover, existing customers spend 31% more and more often on a brand they trust compared to new customers. They are also more likely to recommend your business to others, making it free advertising.

Lastly, retaining customers reduces the costs of continuously reaching out to new customers. While nurturing existing customer relationships still requires effort, it is easier and cheaper than acquiring leads and converting them into customers. 

General statistics on customer retention

To start this article, let’s examine facts and statistics on the costs of acquiring, retaining, and even losing customers. This section will also focus on how powerful customer loyalty can be and what is needed to nurture it.

1. Acquiring a new customer is 5x as expensive as retaining an existing one

According to the Harvard Business Review, various studies suggest that acquiring a new customer can cost five times or even 25 times more than the cost of keeping an existing one. This is supported by the findings of Frederick Reichheld of Bain & Company.

These numbers tell us that businesses can keep costs down by retaining their existing customers rather than trying to attract new ones.

Tip: Did you know that QR code tracking can help you monitor how many new customers you have now.

2. Customer churn costs U.S. providers more than $150 billion per year

The simplest customer retention rate definition is that it is the measure of how well a company keeps its existing customers to continue buying from them over a certain period. A higher retention rate means more customers are staying loyal to a brand.

On the other hand, customer churn, also known as customer attrition, refers to the percentage of customers who stopped using a business's product or service within a specific period. 

Customers who are churned out may have done so because a competitor offered something they preferred or because they have lost the need for it.

Naturally, customer churn hurts businesses. In fact, data from the 2020 CallMiner Churn Index shows that it costs companies $168 billion every year.

3. The “acceptable” SaaS churn rate is 5% to 7% every year

Based on a survey by Private Crest, almost 70% of SaaS companies had a yearly churn rate of less than 10% range, with 75% having a 5% churn rate or lower. 

This has led Bessemer Venture Partners to conclude that an “acceptable” SaaS churn rate is 5 - 7% annually, depending on whether a business measures by customers or revenue. This translates to a 0.42 - 0.58% monthly churn. 

4. More than 50% of consumers have gone the extra mile to buy from their favorite brand

Why is customer retention important? According to the results of a Zendesk survey, around 52% of customers have gone out of their way to buy something from their favorite brands. 

According to the survey, customer retention and loyalty will always guarantee more sales if nurtured with factors such as good prices and services.

5. More than 55% of consumers are loyal to a brand because they love the product

According to a survey done by Yotpo, 55.3% of consumers display strong brand loyalty when a brand has a product they love. Moreover, 37% of consumers become loyal after making five purchases from the same brand.

Other aspects of a brand that consumers think will ensure their loyalty are the following:

• Great deals (25.7%)
• Customer service (7.1%)
• Convenience (5.7%)
• Other (3.2%)
• Cause/charity (1.8%)
• Popularity (1.2%)

6. Brands that incorporate gamification into loyalty strategies see a 22% increase in brand loyalty 

According to G2, incorporating gamification into brand loyalty strategies leads to a 22% rise in brand loyalty, contributing to customer retention in the long run. 

Furthermore, gamification also helps brands increase engagement by 47% and brand awareness by 15%. 

7. More than 80% of customers prefer companies that provide personalized experiences

Based on the 2024 Forbes State of Customer Service and CX Survey, 81% of customers report that they prefer brands that give them personalized customer experiences. 

Additionally, 70% say that interacting with employees familiar with their history with the company (past purchases, buying patterns, necessary support) is important to them.

Statistics on loyalty programs for customer retention

Loyalty programs are one of the best ways to keep customers coming back for more. To see how effective they are, let’s go over these statistics on customer retention when loyalty programs are involved.

8. Loyalty management around the world was estimated to be valued at $10.67 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 9.2% from 2024 to 2030 (Grand View Research).

9. In 2023, North America held more than 34% of the loyalty management market share (Grand View Research).

10. In 2024, the use of loyalty programs increased by 28% (SAP Emarsys).

11. 91% of executives believe that their loyalty programs should offer more rewards or advantages to their customers (PwC). 

12. When asked what they would do for a brand they’re loyal to, 43.5% of respondents said they’d join the brand’s loyalty program (Yotpo).

13. 60% of app users are loyal because of discounts, perks, or rewards offered through the app (SAP Emarsys).

14. More than 83% of global respondents said that choosing to buy again from a brand is influenced by their membership in its loyalty program (Yotpo).

15. 63% of executives claim that their loyalty program budget increased in the most recent planning cycle (PwC). 

16. 90% of loyalty program owners reported a positive return on investment, with the average ROI being 4.8x (Antavo). 

17. 60.3% of loyalty program owners have introduced significant changes to their programs in the past two years (Antavo). 

18. Customers spend 67% more as members of a loyalty program (Annex Cloud).

19. Seven in 10 consumers belong to at least one loyalty program, while three out of four would switch to a brand that offered a better loyalty program (Annex Cloud). 

20. 73% of consumers will adjust their spending habits to maximize the benefits of their loyalty program (Bondbl). 

21. 75% of consumers will favor a brand with a loyalty program (KPMG).

22. Consumers who participate in loyalty programs generate 12-18% more incremental revenue growth annually than non-members (Zinrelo). 

Customer retention statistics based on customer service

Customer service is essential to every customer. It makes sense that it will heavily influence the loyalty of customers to a specific brand.

Here are some statistics that give us an idea of just how important it is to customers.

23. When receiving poor customer service, 42% of people felt disappointed, 43% were unhappy, and 41% felt angry. Because of their experiences, 67% of customers told others about it, and 65% switched to a different brand (Khoros). 

24. 80% of the same brands believed they provided excellent customer service, but only 8% of customers agreed (LiveAgent). 

25. Around 60% of customers would stop shopping with a brand they love after experiencing several instances of bad customer service (Zippia). 

26. 69% of consumers have made purchasing decisions based on the quality of a brand’s customer service (Salesforce). 

27. 92% of consumers are more likely to make another purchase after experiencing good customer service (Salesforce). 

28. 70% of consumers chose not to buy from a brand with long customer service wait times (Salesforce). 

29. The estimated cost of poor customer service ranges from $75 billion to $1.6 trillion annually (Midlands Technical College).

30. Companies that view customer service as a value center achieve 3.5x more revenue growth (Accenture). 

31. 68% of customers say advances in AI make it more important for brands to be trustworthy (Salesforce).

Facts about customer retention from customer experience

It’s safe to say that the customer experience greatly influences customer retention rates. With that in mind, here are some customer retention statistics that will help you better understand the relationship between the two.

32. The global revenue of the customer experience personalization and optimization software and services industry was estimated at $7.6 billion and is expected to rise to $11.6 billion by 2026 (Statista).

33. 94% of customers who gave a company a “very good” customer experience rating will likely purchase more from that company in the future. On the other, only one in five customers who gave a company a “very poor” rating would do the same (Qualtrics XM Institute). 

34. About 75% of consumers who gave a company a “very good” customer experience rating are likely to forgive a company for a bad experience, but only 15% of those who gave a company a “very poor” rating would do the same (Qualtrics XM Institute).

35. Close to 90% of customers who give a company a “very good” customer experience rating are likely to trust a company to take care of their needs. In comparison, 16% of customers who gave a company a “very poor” rating would do the same (Qualtrics XM Institute).

36. Customers in the United States are willing to pay up to 17% more for products and services from brands with a great customer experience (American Express).

37. 69% of customers want to resolve as many issues as possible on their own, while 63% always or almost always start resolving issues by searching through a company’s online resources (Zendesk).

38. Three out of four shoppers prefer to get detailed product information, while 68% were interested in tailored recommendations based on their search criteria (G2).

39. 70% of service team leads, 62% of mobile workers, and 55% of agents say they can’t meet customer demands without an increased budget (Salesforce). 

40. 79% of consumers want fast responses when contacting a brand (Khoros). 

41. Almost 80% of American customers say that speed, convenience, knowledgeable help, and friendly service are important to creating a positive customer experience (PwC).

42. True loyalty, which refers to loyalty driven by emotional connections instead of incentives, reached 34% in 2024 (SAP Emarsys). 

Average customer retention rates per industry

We’ve covered a ton of customer retention statistics already, but we’re not done yet. Let’s discuss the average customer retention rates in every industry.

Customer retention rates vary across industries, but they usually range between 70% and 80%. However, there are still a few outliers. 

Here are the average customer retention rates according to Statista, Firework, and Sprinklr:

43. Media companies (84%)

44. Professional services (84%)

45. Automotive and transportation (83%)

46. Insurance (83%)

47. IT services (81%)

48. Construction and engineering (80%)

49. Telecommunications (78%)

50. Healthcare (77%)

51. Software (77%)

52. Banking and financial services (78%) 

53. Customer services (67%)

54. Manufacturing (67%)

55. Retail (63%)

56. Hospitality and travel (55%)

57. E-commerce (38%)

QR codes: The best customer retention tool you need

The statistics provided above clearly show that a good customer retention rate relies on several factors within a brand’s control. 

A brand can use many tools to improve customer retention, one of which is the humble Quick Response (QR) code. How can this barcode type help brands worldwide? Here are three ways.

Engaging loyalty programs

With a code from a QR code generator with logo integration, you can launch a QR code loyalty program that will guarantee interest from your customers. This can include discounts, cashbacks, or special products and services. 

Since most consumers make decisions based on the loyalty program they are a part of, brands will only benefit from using QR codes this way.

Instant customer service

As research suggests, speedy customer service is something that will keep customers loyal to a brand. 

Having a QR code email or Google Form QR code available for your customers to scan helps them reach out to you faster, making QR codes from the best QR code generator a great tool for achieving good customer retention rates.

Jay Bean, CEO of FreshLime, also shared on Forbes Business Council that 87% of consumers read reviews of businesses online. 

“Generating online reviews by using QR codes is one way to make the increasing popularity of QR codes benefit your business.”

You can also read:  How to use QR codes to measure your customers’ satisfaction with a survey 

Improved customer experience

The versatility of QR codes allows brands to mold the customer experience to their liking. 

Aside from offering a means of communicating with the brand, QR codes can be used to personalize customer experiences with their tracking and analytics capabilities. 

QR codes can also provide instant access to important product information, allowing consumers to resolve any issues themselves.

Keep the right customers around with the help of QR TIGER

The bottom line: Loyal customers are valuable.

While searching for new customers never stops, keeping existing ones around is as important, if not more so.

Having the right customer retention strategy, backed by studies and unique customer experiences, can help you make a bigger impact on your existing customers and keep them coming back.

Having discussed these customer retention statistics, we have one final thing to offer you: an advanced QR code platform for businesses trusted by over 850,000 brands worldwide.

Visit QR TIGER today and book a discovery call with our team of experts to learn how to use QR codes to your advantage. 

FAQ

What is the best way to calculate customer retention?

The best way to calculate your customer retention rate is by using this simple formula:

CRR = ((E-N)/S) x 100

Where:

• CRR is your customer retention rate
• S is the number of customers you have at the start
• E is the number of customers you have at the end
• N is the number of customers acquired during the period you're measuring.

Is 80% a good retention rate?

While a good customer retention rate will depend on your industry, a rate of 35% to 84% is often considered good for a brand.

What is the 80 20 rule of customer retention?

Even after getting good results using a customer retention rate formula, it is important to remember the 80/20 rule. 

This rule states that about 80% of your revenue comes from 20% of your customers. The inverse is also true, where 80% of your customers contribute to 20% of your revenue.