130+ Customer Retention Statistics to Check Out in 2025

What makes a successful brand? Customers.

Businesses often face a huge gap between the rate of customer retention and repeat purchases because of being unable to provide the customer experience they initially promised. 

Even though they perceive customer feedback and include those pointers, the direct criticism isn't shared with respective teams. Not having a clue about customers' dislikes can decrease customer trust, purchases, and, subsequently, retention.

Staying updated on the latest customer-driven practices with customer retention software helps you understand customer challenges and gives a long-lasting solution to increase brand loyalty. 

Let's examine 130+ customer retention statistics across leading industries to understand customer retention in a broader context and check forecast trends. 

Your competing sales team doesn't need many muscles to poach your client. Recurring customer complaints and escalations may increase your customer churn and potentially blurt out bad word of mouth that would close potential doors. The buyer needs constant reassurance that you, as a business, would support them in every leg of their product journey. 

Let's look into how customer retention is a direct gateway to the bottom line and profitability for your teams to stay intact in the future: 

Profit and customer retention statistics

Do you only follow up with your client until the conversion and stop picking up their calls or ignore their emails? With more customer churn and less retention, you might be losing out on a big chunk of profit, which could potentially shut you out. Profitability is an outcome of customer retention and also aids in long-term and sustainable brand growth.

Let's look at some of the trending customer retention statistics that assure higher profitability across industries. 

• According to 48% of online shoppers, extra costs and fees were the top reason for cart abandonment in the United States in 2024. 
• Global consumers cited extra costs at checkout (30%) and payment methods (17%) as the main reasons for card abandonment.
• Between the last quarter of 2023 and the first quarter of 2024, 41% of consumers who clicked and purchased from a retail media campaign were new-to-brand shoppers, i.e., consumers who did not previously complete their purchase in the last 6 months.
• For health and beauty products, around 61% of consumers who clicked and purchased from a retail media campaign were new-to-brand shoppers. 
• A 5% increase in customer retention is cheaper than acquisition. 
• 44% of consumers want personalized rewards based on previous purchase history.
• 32% want a loyalty scheme that reflects their lifestyle.
• The loyalty management market is expected to reach USD 25.4 billion by 2029  from USD 11.4 billion in 2024 at a CAGR of 17.3% from 2024 to 2029
• American Express found that 33% of customers will consider switching to a competitor after a single bad experience. 
• Loyal customers are 5x likely to repurchase and 5x likely to forgive. 4x likely to refer and 7x likely to try a new product or service.
• Unfortunately, almost 2.5 times as many companies focus more on customer acquisition than customer retention despite the fact that it costs five times more to attract a new customer than to retain one. 
• By studying the top 20% of your customers, you can fetch 80% of your sales orders, as per the Pareto principle. 
• 69% of US consumers believe that customer service influences their loyalty. 

• According to a survey, more than half of customers (58%) have higher customer expectations are higher today than they were a year ago. 
• 14% of consumers strongly agree that retailers are committed to delivering the best customer experience. 
• 68% of consumers trust companies to act in society's best interest—a significant jump from the 59% who agreed in the 2020 survey. 
• 78% of consumers say environmental practices influence their decision to buy from a company. 
• 66% have ceased buying from companies whose values didn't align with their own. 
• The typical client retention rate in the BFSI is around 78% - one of the highest in surveys conducted. 
• The likelihood of selling to a new consumer is between 5% and 20%, while the odds skyrocket between 60% and 70% for an existing consumer. 
• Obtaining a new customer is 5-25 times more costly than retaining one. 
• Despite newer options, the average US consumer has held on to the same checking account for 17.75 years and 16.69 for a primary savings account. 

Loyalty program statistics

A loyalty program can set you on the road to unlimited product upsells and potential sales revenue. Loyalty programs are designed to give a sense of relief that the brand will always be there no matter where the consumer is stuck and reinstate the belief in the brand further. This increases brand recall and slips it into conversations with other people. Brands offering freebies, gamification experiences, empathetic services, and credits are some examples of customer loyalty programs running around the world. 

Let's look at newer initiatives in customer retention by looking at these loyalty management statistics that are implemented by brands:

• Global loyalty management was estimated at USD 10.67 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 9.2% from 2024 to 2030.
• The customer loyalty segment accounted for the largest share of over 39% in 2023. 
• At every eligible purchase at Starbucks, members earn 1 USD per mile, which they can apply to their Delta Airlines flight ticket.
• In September 2023, oil and gas company BP Plc added loyalty pricing to its BPme rewards loyalty scheme, offering customers exclusive discounts at around 300 company-owned stores in the UK. 
• The on-premise loyalty segment accounted for a market share of over 51% in 2023. 
• The cloud loyalty segment is anticipated to grow at a CAGR of 9.8% from 2024 to 2030. 
• The large enterprise customer loyalty segment accounted for the largest share of over 62% in 2023. 
• North America held the major share of over 34% of the loyalty management program in 2023. 
• 60.3% of loyalty program owners have made a significant change to their program in the past two years, an increase of 3.3% from last year. 
• 67.0 companies plan to increase investment in customer retention during the economic downturn, while only 31.2% plan to increase investment in acquisition.
• Brands that incorporate gamification into their loyalty strategies see a 47% rise in engagement, a 22% increase in brand loyalty, and a 15% increase in brand awareness. 
• The redemption rate of loyalty program rewards (points, cashback, and other rewards) amounted to 49.8% worldwide in 2023. 

• In 2023, an average consumer in the United States roughly held 18 loyalty program memberships but roughly used only half of them. 
• 87% of existing program owners said that they plan to reward non-transactional behavior in the next three years. 
• 81% of respondents among Generation Z stated that loyalty or rewards program impacted their decision to continue doing business with a brand.
• 75 percent of Generation X respondents (between 1965 and 1980) stated that they felt loyal towards their favorite brands, whereas 9% said that they did not. 
• Among Millennials and Gen Z (born between 1981 and 2000), the share of loyal customers stood at 79 percent. 
• Around 33% of global customers regularly signed up for loyalty programs to earn discounts and rewards. 

These statistics define the value of loyalty management in customer retention and make it one of the most useful strategies for growing a brand.

AI customer service statistics 

With the rise in AI chatbot platforms and text generators, brands are setting new application programming interfaces and prototyping their own virtual assistants. While these assistants offer verbal support, they also automate a huge chunk of content generation that was previously managed by content marketers or support specialists.

With the fast rate of AI adoption, businesses are developing mature AI models and fine-tuned large language platforms to contextualize user sentiments and attend to consumer queries in a timely manner. Better consumer responses play a direct factor in improving customer retention for a brand

Here are some prominent AI customer service statistics in 2025:

• The most popular uses for AI at contact centers in 2024 worldwide were voice authentication and process automation. 
• Emotion recognition/detection had a share of 33% of respondents who claimed that this was currently in use of their contact center. 
• 60% of consumers believe that advances in AI make trust even more important. 
• More than $200 million in global online sales will be influenced by artificial intelligence this holiday season. 
• Nearly three-quarters (72%) of consumers trust companies less than they did a year ago. 

• 65% feel companies are reckless with consumer data. 
• 60% of consumers say advances in AI  make it more important for companies to be trustworthy. 
• Nearly 60% of consumers prefer using fewer touchpoints to get information or complete tasks.
• 66% of consumers would stop buying from a brand due to high prices.
• The customer experience management (CXM) market's compound annual growth rate (CAGR) is expected to grow by 15.8% between 2024 and 2030.
• 74% of consumers have used multiple channels to start and complete a transaction. 
• 54% of customers always expect offers to be personalized, up from 49% in 2019.
• 66% of customers expect companies to understand their unique needs and expectations, yet 66% say that they are generally treated like numbers. 

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.

• 54% of businesses stated their brands used exclusively first-party data to personalize consumer experiences because it is of higher quality than other data. 
• 72% of consumers said that they expect the businesses they buy from to recognize them as individuals and know their interests. 
• Over three-quarters of consumers said that receiving personalized communication was a key factor prompting their consideration of the brand.
• 56% of businesses said that online channels take the highest share of consumer budget, whereas 44% say that offline channels account for almost half of the total available budget. 
• 78% of consumers said that content made them more likely to repurchase.
• 78% of consumers are more likely to refer friends and family to companies that personalize.  
• Research shows that personalization most often drives 10 to 15% revenue lift (with company-specific lift spanning 5 to 25%) 
• Companies capture 40% more revenue from personalized marketing actions or tactics. 
• 7 out of 10 US shoppers considered loyalty programs important to keep them connected to their favorite brands.

• In 2021, the global marketing-related data market was estimated to be worth nearly 17.7 billion US dollars.
• 71% of customers see no improvement or even see an increase in the time and effort required to make a purchase decision.
• 62% of marketers said that they were extremely or very confident in their return on investment measurement on social media.
• On over-the-top (OTT) and connected TV (CTV), native advertising, podcasts, and audio streaming, that share stood below 50%.
• While 85% of customers say that they will not do business with a company if they are worried about its data practices, businesses need to be proactive about security.
• 81% of consumers want to know what is behind the purchase recommendations from the conversational AI tools.

Bank customer retention statistics

Banks fall prey to consistent churn because there are many contenders that offer great financial services. The utmost concern of every customer is to search for a bank or financial provider that offers an affordable interest rate and maximum return on investment.  Despite the numerous benefits that bank provides, like timely payment transfers, customer service assistance, and account management, it is hard for them to retain existing customers as well as bring new ones on board. 

Below are some critical customer retention statistics that banks should know to prioritize customer experience in 2024.

• Due to the decline in CX quality, customer retention for the multichannel banking industry dropped from 78% in 2022 to 76% in 2023. 
• According to Forrester's 2022 customer obsession assessment, just 3% of companies are customer-obsessed. 
• About a quarter (23%) of people worldwide say that they are likely to switch banks in the next 12 months.
• More than one in three (37%) say that they are likely to switch banks in the coming year, up by 3 percentage points in 2021.
• 31% of people worldwide say that bank charges are too high. 
• According to a survey of 75,000 bank customers in 33 markets worldwide, trust was the most important factor in choosing their bank. 
• The global customer satisfaction rating with digital banking services stood at 4.16, with Brazil, Poland, and South Africa scoring the highest at approximately 4.37 index points. 
• Digital transformation in BFSI increases customer retention rate by 3-5 times, allowing enterprises to tailor engagement strategies.
• Data analytics help businesses understand customer behavior for loan servicing and reduce collection costs by 15%.

B2B customer retention statistics

B2B companies usually collect customer satisfaction data with after-deal surveys or sales objection surveys to understand customers' negative opinions. B2B brands usually prioritize a net promoter score (NPS) aggregate for sentimental analysis of customers post-purchase. 

The net promoter score (NPS)  aggregate states that on a scale of 0-10, users who rate your product or service below 5 are passives, 6-8 are detractors, and 9 and 10 are promoters. Not only does NPS allow you to improve lead generation practices, but it also ideates on customer requirements and addresses their grievances to increase customer retention.

Below are some customer retention statistics for B2B brands that are evident in the industry today.

• The typical B2B retention rate is between 76% and 81%, which is a high average, but brands should continue maintaining the quality of their services.
• In 2024, business-to-business advertising and marketing spending in the United States amounted to an estimated 59.5 billion US dollars. The annual value was projected to exceed 69 billion dollars by 2026.
• 72% of customers want immediate service. 
• 70% expect anyone they interact with to have the full context. 
• 62% of consumers think that experiences should flow naturally between physical and digital spaces. 
• In 2023, B2B services reported a net promoter score of 39%.
• 78% of customers now anticipate a higher level of personalization in their interactions.
• As 77% of business leaders recognize, deeper personalization leads to increased customer retention - and 66% believe that it lowers acquisition costs.  

Customer experience statistics

The customer always anticipates kind and humane behavior from brands, even after they have converted. Sometimes, brands try harder to bring new ones on board, thereby directly increasing their churn rate and customer dissatisfaction. To have a supreme customer experience, you need to streamline your digital channels as well as offline channels so that no matter what channel you get a query from, you can route it in the fastest time frame possible and close tickets. 

Here are some industry-wide customer experience statistics to increase customer retention in 2024.

• 44.5% of organizations worldwide revealed that they perceive customer experience (CX) as a primary competitive differentiator.
• During a 2022 survey, 54% of respondents in the United States stated that they prefer phone calls to resolve customer service problems.
• The global revenue of the customer experience personalization and optimization software and services industry was estimated at 7.6 billion US dollars and would increase to 11.6 billion dollars in 2026.
• Companies with the strongest omnichannel customer experience strategies enjoy 10% year-over-year growth, a 10% increase in average order value, and a 25% increase in close rates. 
• Three in four shoppers would like to obtain detailed information on items, while the other 68% of respondents were interested in tailored recommendations based on their criteria.
• When asked how their company measured effectiveness in using AI-driven personalization, 47% of business leaders identified data accuracy as the foremost criterion. 
• The speed of real-time data, consumer retention, and repeat purchases followed closely, each mentioned by 44% of respondents.
• 42% identified time-saving for the business as another indicator of success. 
• Around 55% of Gen X online shoppers wished e-commerce sites would enhance frictionless payment methods.
• 45% of surveyed Millennials would like to have personalized products recommended when shopping online,  an option that appealed to the same percentage of Gen Z online shoppers.
• In 2023, e-commerce accounted for over 19% of retail sales worldwide.
• Forecasts indicate that by 2027, the online segment will make up close to a quarter of total global online retail sales. 
• 70% of customers expect anyone they interact with to have full context. 
• The online conversion rates in e-commerce were highest in the beauty and makeup sector, at 2.3 percent in the third quarter of 2024.
• General apparel followed, with a 2.2 percent conversion rate.
• The average conversion rate of e-commerce sites across all selected sectors stood at 1.8%
• In December 2023, the average value of e-commerce purchases made through desktops was approximately 159 US dollars.

• 1 in 3 customers will leave a brand they love after just one bad experience.
• 92% of consumers would completely abandon a company after two or three negative interactions.
• Companies that earn $1 billion annually can expect to earn, on average, an additional $700 million within 3 years of investing in customer experience.
• Three out of five customers say that good customer service is the key to their loyalty to the brand.

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. Consumers now expect vanilla order confirmations, discounted plans leading to email coordination, and further representative updates to invitations to a community event. Personalized and tailored marketing journeys would assure the customer of your lifetime value, hence increasing your average contract value (ACV).

Look at how marketing influences customer retention on a grander scale and how foolproof marketing initiatives upheave a customer's sense of belonging.

• In April 2023, 35% of customers voted marketplaces as their favorite e-commerce channel.
• In 2025, digital channels would attract nearly 61% of global advertising expenditure, while TV would account for less than 22%
• In 2024, the sectors with the fastest-growing spending worldwide will include politics, non-profits, and financial services, with politics alone projected to increase by more than 500 percent.
• South Asia was projected to be the only world region recording a double-digit ad expenditure growth rate 2024.
• In 2023, advertising and marketing spending worldwide grew by around 5% to over 1.65 trillion US dollars.
• Influencers accounted for 40% of their spending on brand promotion. 
• Nearly half (48%) of all consumers say that AI has made customer service more helpful.

• Purchase history was the most important marketing data to improve business outcomes, cited by more than 4 out of 10 surveyed marketers.
• Another 2023 study revealed which channels marketing decision-makers worldwide automated the most, with email and social media topping the ranking. 
• Approximately 91% of respondents reported using social media as a marketing channel, and websites and apps recorded the same share.
• Digital advertisement and email marketing followed closely, each selected by 90% of interviewees.
• Customers are 70% more likely to make a purchase from a retargeting ad. 
• When someone conducts a search after initially seeing a related display ad, the likelihood of them converting is 59%.

Retain your value

Becoming a consumer-first brand and providing them with first-touch attribution facilities can be the lever of your progress. Many companies face the ongoing pain of customer retention and higher churn rates. But starting with small, resourceful steps and personalizing consumer experiences can change the whole game and put you first in the race of consumer-loved brands in the industry. Attending to the right query at the right time without giving way to consumer frustration can ignite feelings of brand loyalty and reputation.

Check 120+ digital marketing statistics to improve lead generation across multiple channels and spike revenue growth.