35+ Must-Know Customer Retention Statistics for [2025]

One of the things we discovered when compiling these must-know statistics on customer retention is that the cost of losing a customer has tripled.

A decade ago, losing a customer cost the average business about $9. Today, companies lose $29 for every customer lost. 

Think about that. You’ve worked hard to get your product or services in front of the customer and even harder to convince them to buy. If you’re not working just as hard to keep them, it will cost you dearly.

However, cost is only one part of the equation.

We've gathered customer retention statistics that will matter most in 2025 and beyond. Find out why customers stay, why they leave, and what you can do to keep them around longer.

Key customer retention statistics

• Losing a customer costs businesses $29 today, up from $9 a decade ago.
• A 2% increase in customer retention has the same impact as reducing costs by 10%.
• 59% of US consumers will stay loyal to a brand for life once committed.
• 32% of consumers will leave a brand after just one bad experience.
• Repeat customers spend more and drive higher revenue.
• Acquiring new customers is 5 times more expensive than retaining existing ones.

The state of customer retention

The average business keeps 75% of its customers, although this varies by sector. For instance, the media industry has the highest customer retention rate(CRR) at 84%, while hospitality has the lowest at 55%. 

Here’s how retention rates look across several industries:

Customer retention rate(CRR) by industry

It takes time to build trust with customers

According to one study, 37% of consumers admitted that they’d have to buy five times before considering themselves loyal to the brand.

But, once a business has their loyalty, 39.4% of consumers are willing to pay a higher price for a product even if more affordable alternatives exist.

More interestingly, when customers commit to a brand, they really commit. Studies show that 59% of US consumers will stay loyal to a brand for life once they’re committed.

Customer retention statistics across generations

Now, let’s look at how client retention rates vary across generations. 

First, you need to know that earning trust isn’t easy for any generation. 

Baby Boomers and Gen Z are the toughest crowds, with only 37% saying companies can easily gain their trust. Gen X is slightly more open at 39%, while Millennials(40%) are more likely to trust a company. 

In short, age doesn’t change how hard businesses have to work for customers’ trust. 

The financial impact of customer retention according to customer retention statistics 

The cost of not retaining a customer is increasing each year. 

In 2013, businesses lost an average of $9 for every new customer acquired. By 2022, this cost had grown to $29. Percentage-wise, the cost of losing a customer increased by 222% over eight years.

Now, let's look at the implications of customer retention on your bottom line.

First-time buyers have a 27% chance of coming back

And if they return for a second or third purchase, the chances of them buying again will increase to 49% and 62%. 

Repeat customers usually spend more and buy more often. The top 10% spend twice as much per order, and the cream of the crop (top 1%) spends 2.5x more than the average customer. 

If you're still doubting the effect of customer retention, here’s one more customer retention statistic: Acquiring a new customer costs five times more [8] than retaining an existing one. 

Additionally, a 2% increase in customer retention has the same impact as reducing costs by 10%.

What drives customer loyalty?

Quality products are a big deal for customers. Studies show that nearly half (46%) of consumers become loyal after using a product and liking its quality. 

However, loyalty does not always start with product quality. 

20% of customers form loyalty during shopping, while 5% become loyal when researching products. 

Aside from product quality, what else makes a customer love and stay loyal to a brand?

You’d be right if you said customer experience.

Consumers value speed, convenience, helpful employees, and friendly service the most. Each of these factors ranked above 70% in importance in the PWC study.

More specifically, 73% of people mention that the customer experience influences whether they buy from a brand or not. 

More than half (55.3%) of customers will stay loyal to a brand they love for its products. However, 51.3% will leave a brand if the quality doesn’t meet their expectations. 

Personalization is still important to consumers

So much so that 3 out of 4 US consumers say they’re more likely to stay loyal to a brand that understands them personally. 

If businesses take it a notch higher and offer personalized experiences, 8% of consumers will continue to buy from the brand. 

On average, 89% of consumers are more likely to return to (and buy from) a business that provides a positive customer experience.

Why customers leave according to customer retention statistics

Businesses lose about 10 to 25 percent of their customers each year.

Why do customers leave?

Approximately 32% of consumers say they would leave a brand they love after just one bad experience. In Latin America, this number is 49%.

More specifically, poor customer service will drive 23.5% of loyal customers away.

Lack of personalization is also another primary reason why loyal customers leave.

One study found that US consumers' most common frustration with a brand is receiving irrelevant content or offers(48%).

Business values affect customer retention

Customers want excellent quality products, seamless experiences, and affordable prices. But above all else, customers care about a business's why and values. 

A recent Salesforce study revealed most customers (89%) expect companies to state their values clearly. More than that, 90% of customers want companies to walk the talk and demonstrate these values. 

Interestingly, customers don’t just want to see businesses live up to their values. They want to be involved as well. The same study reports that 55% of consumers believe they can influence change in companies. 

What happens when a business’s values don’t align with those of a customer?

They stop buying! 

Over half (62%) of customers have stopped buying from companies whose values didn't align with theirs. 

This focus on values applies to B2B buyers as well. In fact, 75% of B2B buyers look at a vendor’s ethics before they do business with them. 

For the modern-day consumer, cancel culture is no longer limited to celebrities. 

Businesses can become casualties, too. 

To put this into perspective, almost 18% of consumers are willing to stop buying from a brand to support a social issue or join a boycott they feel passionate about.

Loyalty programs and their effect on customer retention

Should your business start a loyalty program?

Is a loyalty program effective?

The short answer: Yes, loyalty programs work.

Now, let’s get into a more detailed answer. 

Seven in ten US shoppers find loyalty programs important for staying connected to their favorite brands. 

Once a customer joins a loyalty program, nearly half will increase their spending. 

For 30% of customers, the most beneficial aspects of loyalty programs are the rewards, benefits, and privileges such as discounts, rebates, and exclusive offers. 

B2B vs. B2C customer retention statistics

Business buyers are slightly more trusting than regular consumers. While 56% of B2B buyers say companies struggle to earn their trust, that number jumps to 63% for everyday consumers.

How do companies measure customer retention?

These are the main metrics companies use to understand customer retention.

Customer Retention Rate (CRR)

The CRR measures the percentage of customers who remain with a company over time. The time in question can be a month, quarterly, a year, or more, depending on your business model.

To get the retention rate, businesses will typically:

1. Take the total number of customers at the end of a specific period
2. Subtract the number of new customers acquired during that period
3. Divide by the total number of customers at the start of the period
4. Multiply by 100 to express it as a percentage

CRR= (E-N / S x 100)

Where:

• E = Total customers at the end of the period
• N = New customers acquired during the period
• S = Total customers at the start of the period

For example, if our company Cropink starts the month with 500 customers, acquires 50 new customers, and ends the month with 520 customers, here’s how we’d calculate the CRR:

CRR = (E - N) / S x 100

CRR = (520 - 50) / 500 x 100

CRR = 470 / 500 x 100

CRR = 94%

The customer retention rate for the month is 94%.

Churn rate

The churn rate is simply the flip side of CRR. In other words, it shows the percentage of customers a business has lost over a period of time.

Churn Rate = (customers lost / customers at the start) x 100

Using our previous example, this would be the churn rate:

Churn Rate = (30 / 500) x 100 = 6%

For this fictional scenario, Cropink lost 6% of its customers that month. 

Net Promoter Score (NPS) 

The NPS helps a company understand customer loyalty by assessing how likely a customer is to recommend a brand’s product to others. 

In most cases, businesses assess the NPS by asking customers how likely they are to recommend a product on a scale of 1 to 10. 

Based on their responses, customers are categorized into 3 groups:

• Promoters (score 9-10): Delighted and loyal customers likely to recommend the business.
• Passives (score 7-8): Satisfied but not as enthusiastic. They are unlikely to actively promote the business.
• Detractors (score 0-6): Unhappy customers who may share negative feedback and are unlikely to recommend the business.

The Net Promoter Score (NPS) is then calculated using the following formula:

NPS = % of Promoters - % of Detractors

For example, if 60% of customers are Promoters and 20% are Detractors:

NPS = 60%- 20% = 40

So, the NPS would be 40.

Customer Effort Score (CES)

The CES shows companies how easy it is for customers to interact with their products, services, and the company.

It’s usually determined by asking customers how much effort they had to put into getting their problem solved. Responses typically range from ‘very easy’ to ‘very difficult.’

CES = (sum of effort scores) / (total number of responses)

Here’s how it works:

After surveying customers, you assign a score (usually on a scale from 1 to 5, where 1 = very difficult and 5 = very easy).

Add all the scores and divide by the total number of responses to get the average effort score.

For example, if 5 customers gave the following scores: 5, 4, 3, 4, 5, the CES would be:

CES = (5 + 4 + 3 + 4 + 5) / 5 = 21 / 5 = 4.2

In this case, customers have a relatively easy time interacting with your company, which may turn them into return customers.

Actionable takeaways for increasing customer retention

You can tell from these customer retention statistics that keeping a customer is not easy. 

That isn’t to say it’s impossible. 

Here are a few customer retention strategies to help you keep repeat customers:

1. Create a seamless buying experience. Every click you eliminate moves your customer closer to becoming a repeat customer.
2. Train your team to solve customer problems faster. Your team’s speed and friendliness will improve the customer experience and increase loyalty.
3. Learn what your customers love, then deliver recommendations and offers to match their interests.
4. Engage customers to provide a review of their experiences. But don’t stop there. Implement their suggested improvements and show them that their voices matter.
5. Offer discounts, rewards, and incentives to keep customers coming back.
6. Stay visible and top-of-mind by interacting with customers on socials, email, etc.
7. Share reviews from happy customers to increase trust with your other customers. 

FAQs

What is a good customer retention rate?

A customer retention rate of 75% is considered good, although this varies by industry. Some industries, like media and professional services, may see retention rates of 84%, while others, like hospitality, might have lower rates, around 55%.

What does 80% retention rate mean?

An 80% retention rate means that 80% of customers continue to buy from you after their initial purchase. 

Do customer retention rates increase by 5% for every 1% increase in customer satisfaction?

Improving satisfaction can increase retention, but the exact effect varies based on the quality of your product, customer service, and experience. A 1% improvement in satisfaction can lead to a measurable increase in retention, but it’s not necessarily a fixed 5%. 

How do you measure customer retention?

The formula for measuring customer retention is as follows:

CRR= (E-N / S x 100)

Where:

E = Total customers at the end of the period

N = New customers acquired during the period

S = Total customers at the start of the period

For example, if you start with 500 customers, gain 50 new ones, and end with 520, your retention rate is 94%.

Is customer retention rate a KPI?

Yes, customer retention is a KPI. Companies track it alongside other metrics like churn rate, Net Promoter Score (NPS), and Customer Effort Score (CES). Combined, these metrics show how well a business keeps its customers.

What affects customer retention rate?

Product quality and customer experience affect customer retention the most. However, there are other factors, such as price, a brand’s value, etc, that have an effect on customer retention. 

How does AI affect customer retention?

AI can help businesses deliver the personalization that customers expect. It can predict customer behavior, automate responses, and create targeted recommendations. This matters because 3 out of 4 customers stay loyal to brands that understand them personally.

Wrapping up

Every customer who stays is one you don't have to replace. And that is more valuable than ever in today's super competitive market.

So, what's next?

First, check the customer retention statistics and determine where you're going wrong. 

Next, pick out one or two retention strategies and test them in your business. Even the smallest changes, such as responding faster to customer questions or remembering their preferences, can turn a one-time buyer into a loyal fan.

Sources

1. Shopify. Average Customer Retention Rate by Industry
2. Yotpo. How User-Generated Content Impacts Purchasing Decisions and Brand Loyalty
3. Yotpo. Customer Loyalty Survey Data. What Drives Loyalty
4. Acquia. Once They Commit, US Consumers Are Loyal for Life, Says Acquia Survey
5. Salesforce. State of the Connected Customer, 4th Edition
6. SimplicityDX. Press Release. Brands Losing a Record $29 for Each New Customer Acquired
7. Smile.io. Why Repeat Customers Are More Profitable
8. IndustrySelect. 14 Surprising Customer Retention Statistics
9. PwC. How Customer Experience Drives Customer Loyalty
10. PwC. Experience Is Everything. Here’s How to Get It Right
11. Chron. What Percentage of Customers Does a Business Lose Each Year?
12. Statista. Leading Reasons Why Consumers Worldwide Change Brands
13. Statista. Brand Loyalty. Statistics & Facts
14. InvespCRO. The Importance of Customer Loyalty Programs – Statistics and Trends