CUSTOMER RETENTION STATISTICS – The Ultimate Collection for Small Business

CUSTOMER RETENTION STATISTICS – The Ultimate Collection for Small Business

We’ve collected these customer retention statistics for small businesses from a variety of sources. Enjoy the list and see if any catch your attention that might be especially relevent to your company.

What is Customer Retention?

Customer retention refers to the strategic efforts a business makes to keep existing customers engaged and loyal over time. It’s about nurturing positive relationships with customers to encourage repeat purchases, foster brand advocacy, and reduce customer churn.

This involves consistently providing exceptional experiences, personalized services, and addressing customer needs proactively. Effective customer retention strategies aim to create a loyal customer base that contributes to long-term revenue and maximizes customer lifetime value.

By understanding and meeting the evolving preferences and expectations of their existing customers, businesses work to build a stable and loyal clientele.

Last updated: October 16, 2016

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customer retention statistics


  • 80 percent of businesses surveyed rely on email marketing for customer retention.
  • 56 percent of survey respondents considered email marketing to be the most effective method of reaching customer retention goals.
  • 36 percent of U.S. retail professionals said organic search drives customer retention.
  • 43 percent of U.S. retail professionals said paid search drives customer retention.
  • 44 percent of U.S. retail professionals said social media drives customer retention.
  • 37 percent of U.S. retail professionals said retargeting drives customer retention.
  • 21 percent of U.S. retail professionals said affiliates drive customer retention.
  • 18 percent of U.S. retail professionals said referral marketing drives customer retention.
  • 8 percent of U.S. retail professionals said mobile marketing drives customer retention.


customer retention statistics

  • It costs 5 percent more to acquire a new customer than it does to keep a current one.
  • It costs 16x more to bring a new customer up to the same level as a current one.
  • 82 percent of companies agree that retention is cheaper to execute than acquisition.
  • A mere two percent increase in customer retention can lower costs by as much as 10 percent.


  • 82 percent of consumers in the United States said they stopped doing business with a company due to a poor customer experience.
  • Companies lose 71 percent of consumers due to poor customer service.
  • 68 percent of customers leave you because they perceive you are indifferent to them.
  • 60 to 70 percent of customers will do business with a company again if it deals with a customer service issue fairly even if the result is not in their favor.
  • 47 percent of customers would take their business to a competitor within a day of experiencing poor customer service.
  • 66 percent of consumers who switched brands did so because of poor service.


customer retention statistics

  • The average repeat customer spends 67 percent more in months 31-36 of their relationship with a business than they do in months 0-6.
  • A five percent increase in customer retention can lead to an increase in profits of between 25 and 95 percent.
  • Lowering your customer churn rate by five percent can increase your profitability by 25 to 125 percent.
  • Repeat customers spend 33 percent more than new customers.
  • A 10 percent increase in customer retention levels results in a 30 percent increase in the value of the company.

Customer Retention Statistics Summary

Customer Retention Statistics Percentage

Probability of selling to existing customer 60-70%

Probability of selling to new prospect 5-20%

Future profits from 20% of existing customers 80%

Business from existing customers 65%

Executives prioritizing customer retention 32%

Annual customer churn rate 15%

First-time customers not returning 11-20%

Businesses using email marketing 80%

Most effective method for customer retention Email marketing (56%)

Organic search driving customer retention 36%

Paid search driving customer retention 43%

Social media driving customer retention 44%

Retargeting driving customer retention 37%

Affiliates driving customer retention 21%

Referral marketing driving customer retention 18%

Mobile marketing driving customer retention 8%

Cost to acquire a new customer compared to keeping a current one 5% more

Cost to bring a new customer to the level of a current one 16x more

Companies agreeing retention is cheaper than acquisition 82%

Increase in customer retention leading to increased profits 25-95%

Lowering customer churn rate leading to increased profitability 25-125%

Repeat customers spending more than new customers 33%

Increase in customer retention levels leading to increased company value 30%

The Importance of Customer Retention

Customer retention is a critical aspect of any successful business strategy. While acquiring new customers is essential for growth, retaining existing customers is equally crucial for sustained business success and long-term sustainability.

  • Sustained Revenue and Profitability
  • Cost-Effectiveness
  • Brand Advocacy and Word-of-Mouth Marketing
  • Increased Customer Lifetime Value (CLV)
  • Competitive Edge
  • Insights for Improvement
  • Stability in Turbulent Times
  • Building Trust and Relationships
  • Nurturing Customer Loyalty Programs
  • A Platform for Growth

Sustained Revenue and Profitability

Retaining existing customers ensures a steady flow of income, as they are more likely to make repeat purchases and are generally less sensitive to price changes. These customers also tend to buy more over time, as they develop trust and loyalty towards your brand. Cultivating this loyalty not only stabilizes your revenue stream but also provides a predictable financial landscape for planning future growth strategies.


Acquiring new customers involves marketing, advertising, and promotional efforts, which can be costly. Studies suggest that it can be five to 25 times more expensive to acquire a new customer than to retain an existing one. By investing in customer retention, businesses can maximize the value of their existing customer base, making it a more cost-effective strategy in the long run.

Brand Advocacy and Word-of-Mouth Marketing

Satisfied customers often become brand advocates, sharing their positive experiences with others. This word-of-mouth marketing is incredibly valuable as it comes with the trust and credibility of personal recommendations. It’s a powerful tool that can drive new customer acquisitions more effectively than traditional marketing methods.

Increased Customer Lifetime Value (CLV)

Focusing on customer retention strategies, such as loyalty programs or personalized customer service, can significantly increase the CLV. This metric represents the total revenue a business can expect from a single customer over the course of their relationship, making it a crucial indicator of long-term business success.

Competitive Edge

In a crowded marketplace, the ability to retain customers can be a key differentiator. A business that nurtures and maintains customer relationships is more likely to withstand market competition and changing consumer trends, setting it apart from competitors that continually need to invest in new customer acquisition.

Insights for Improvement

Engaging with and retaining customers provides a wealth of insights into customer preferences, behaviors, and feedback. This information is invaluable for continuous improvement of products and services. It allows businesses to make data-driven decisions that are more likely to meet customer expectations and needs.

Stability in Turbulent Times

During economic downturns or market shifts, a loyal customer base acts as a buffer. These customers provide a reliable revenue stream, allowing the business to maintain stability and weather challenging periods more effectively.

Building Trust and Relationships

Trust is the foundation of customer retention. Consistently delivering on promises, providing high-quality products and services, and engaging in transparent communication help in building strong, long-lasting customer relationships. This trust translates into customer loyalty and retention.

Nurturing Customer Loyalty Programs

Implementing loyalty programs is an effective way to reward repeat customers and encourage continued business. These programs can offer discounts, exclusive access, or other perks that not only incentivize purchases but also enhance the customer experience.

A Platform for Growth

A strong base of loyal customers provides a stable platform from which a business can explore new markets, innovate products, and expand services. With a reliable revenue stream from existing customers, businesses can allocate resources toward growth opportunities with greater confidence.

The significance of customer retention extends across various facets of your business, from enhancing your bottom line to influencing your marketing strategies, including SEO. It also plays a pivotal role in optimizing your sales costs and elevating the quality of your customer service. For more insights into customer retention, explore the resources linked below:

Retain Customers Photo via Shutterstock

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