55 Must-Know Statistics About Customer Retention
Posted: Wed Feb 19, 2025 6:32 am
Customer retention is really important when it comes to business success. Keeping customers saves brands time, increases revenue, and even helps them grow their business. In this article, we look at the most important customer retention statistics that explain why.
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Why is customer retention important?
Customer retention is one of the most important guatemala mobile database activities in a company. But here are the reasons why it is so important.
Brands can increase revenue by up to 29% by retaining 5% more customers.
Profitability can be increased by 25% by retaining existing customers.
About 50% of a company's revenue can be generated by its top 8% of loyal customers.
A company's valuation can be derived from its highest-value customers.
Customer loyalty management is valued at $4 billion per year (March 2022).
Globally, brands spend $75 billion on their loyalty management system.
It costs approximately 1/6th of the price to convert a customer who has already purchased from the brand.
Other studies have shown that converting a new customer can cost up to 25 times more than converting an existing customer.
82% of brand leaders believe it is much more cost-effective to sell to existing customers than to new customers.
Many brands report that 65% to 75% of their business comes from retained customers.
Consumers switching to a new brand are costing companies $1.6 trillion a year.
Loyalty Program Statistics
Loyalty programs are the foundation of customer retention systems. They can be used by brands operating in retail, tourism, or even services. But how are they useful?
Loyalty programs can help increase a customer’s average income by 54%.
The average customer is part of 16 to 17 loyalty programs, but only uses about seven of them.
Over the past five years, consumers were joining about 24.6% more loyalty programs, but utilization of those programs increased by only 10.4%.
2021 was the first time loyalty program usage improved in the past six years.
Personalized gamification can improve a company's growth by up to 10%.
Over the next five years, the top 15% of companies will benefit from $800 billion in personalization loyalty programs.
Personalization of loyalty programs
Personalization is really important for loyalty programs and other marketing activities. How does personalization help loyalty programs achieve more results? These statistics tell us more.
Starbucks has been using gamification through its personalized customer loyalty programs.
smile
Why is customer retention important?
Customer retention is one of the most important guatemala mobile database activities in a company. But here are the reasons why it is so important.
Brands can increase revenue by up to 29% by retaining 5% more customers.
Profitability can be increased by 25% by retaining existing customers.
About 50% of a company's revenue can be generated by its top 8% of loyal customers.
A company's valuation can be derived from its highest-value customers.
Customer loyalty management is valued at $4 billion per year (March 2022).
Globally, brands spend $75 billion on their loyalty management system.
It costs approximately 1/6th of the price to convert a customer who has already purchased from the brand.
Other studies have shown that converting a new customer can cost up to 25 times more than converting an existing customer.
82% of brand leaders believe it is much more cost-effective to sell to existing customers than to new customers.
Many brands report that 65% to 75% of their business comes from retained customers.
Consumers switching to a new brand are costing companies $1.6 trillion a year.
Loyalty Program Statistics
Loyalty programs are the foundation of customer retention systems. They can be used by brands operating in retail, tourism, or even services. But how are they useful?
Loyalty programs can help increase a customer’s average income by 54%.
The average customer is part of 16 to 17 loyalty programs, but only uses about seven of them.
Over the past five years, consumers were joining about 24.6% more loyalty programs, but utilization of those programs increased by only 10.4%.
2021 was the first time loyalty program usage improved in the past six years.
Personalized gamification can improve a company's growth by up to 10%.
Over the next five years, the top 15% of companies will benefit from $800 billion in personalization loyalty programs.
Personalization of loyalty programs
Personalization is really important for loyalty programs and other marketing activities. How does personalization help loyalty programs achieve more results? These statistics tell us more.
Starbucks has been using gamification through its personalized customer loyalty programs.