We have compiled a list of the most eye-opening and impactful statistics relating to customer retention that every business owner should know!
Customer retention is arguably the most important factor in the success of an established business. We compiled a list of the most eye-opening and impactful statistics relating to customer retention that every business owner should know!
Customer Retention Statistics
- As many as 44% of businesses fail to measure their retention rate. (CustomerGuage)
- 82% of companies agree that retention is cheaper than acquisition. (SmallBizGenius)
- Companies that prioritize customer retention over customer acquisition are 60% more profitable
- 67% of churn is preventable if the customer’s problem is resolved during their first interaction
- Customers are 2.4 times more likely to stick with a brand when their problems are solved quickly.
- 61% would switch to a competitor after just one poor experience.
- 85% of business buyers say that experience is as important as a company’s products or services
- According to a study on consumer perception by Cogito, 74% of consumers believe that unhappy employees negatively affect the customer experience
- 75% of respondents, in a PwC survey said that they always choose to speak to a human over a bot.
- 13% of unhappy customers will share their experiences with others. (Help Scout)
Common themes
Based on these statistics there are a few key takeaways that can help businesses with their retention performance.
Retention Focus: Businesses that have a strong focus on customer retention tend to be more profitable
Human-to-human connection: Human connection often drives customer retention and loyalty
Speed of response: When problems arise, quickly responding to the issue can help prevent losing a loyal customer.