28 Critical Customer Retention Statistics [2026]: Average Customer Retention Rate By Industry

Research Summary. While businesses often pour resources into attracting new customers, the significance of customer retention cannot be overstated. Retaining existing customers is a crucial determinant of a company’s long-term success and profitability. As market dynamics shift in 2026, understanding the value of customer loyalty and the implications of customer experience becomes paramount.

• Increasing customer retention by just 5% can lead to an astonishing 25-95% increase in profits.

• Existing customers have a 60-70% likelihood of making a purchase compared to a mere 5-20% for new customers.

• 65% of a company’s revenue is generated from repeat customers.

• Acquiring new customers can cost 6 to 7 times more than retaining existing ones.

• 72% of customers will switch to a competitor after a single negative experience.

• Businesses collectively lose over $75 billion annually due to customer attrition from poor service.

For deeper insights, we have categorized the data as follows:
Benefits | Tactics | Retention vs. Acquisition | Customer Opinions | Causes of Bad Retention | Churn Rate

Customer Retention Statistics by the Benefits of Good Customer Retention

• The top 10% of loyal customers spend three times more per transaction than the other 90%.

  Moreover, the top 1% of customers spend five times more than the remaining 99%.

• Existing customers have a 60-70% chance of making a purchase, compared to a mere 5-20% for new customers.

  Furthermore, existing customers tend to spend 31% more and are 50% more likely to try new products from your brand.

• 60% of U.S. customers were more likely to engage with a brand after a positive customer service interaction in 2022.

  This is a decrease from 68% in 2017, highlighting the evolving expectations of consumers.

• In the apparel industry, repeat customers spend an average of 67% more in the 31-36 months following their first purchase.

Customer Retention Statistics by Retention Tactics and Strategies

• 90% of consumers are likely to recommend a brand after interacting with it on social media.

• 70.7% of global companies believe that ease of resolution is the most significant factor in enhancing customer satisfaction.

• In 2022, businesses globally invested approximately $323 billion in the customer loyalty ecosystem.

• On average, U.S. customers are enrolled in 16.7 loyalty programs but actively participate in less than half.

Customer Retention Statistics by Retention vs. Acquisition

• 18% of businesses prioritize customer retention over acquisition.

  Meanwhile, 44% focus more on acquisition, and 38% balance both strategies equally.

• Costing six to seven times more to acquire new customers than to retain existing ones emphasizes the importance of loyalty.

• Boosting customer retention rates by just 5% can lead to profits increasing by 25-95%.

Customer Retention Statistics by Customer Opinions

• 56% of customers remain loyal to brands that understand their needs.

• 74% of customers will stay loyal due to high-quality products.

  However, 66% value good pricing, and 56% prioritize excellent customer service.

  Key factors influencing brand loyalty include:

  Factor	Percent of Customers Who Say This is Very Important to Their Brand Loyalty
  Product quality	74%
  Value for money	66%
  Product consistency	65%
  Customer service	56%
  Easy shopping experience (incl. returns)	55%
  Selection/Assortment of products	55%
  Pricing	54%

• Only 37% of customers cite rewards as a key reason for loyalty.

Customer Retention Statistics by Top Causes of Bad Retention

• 72% of customers will abandon a brand after a single negative encounter.

  This often results from long wait times and complicated procedures to reach customer service, with only 53% of customers resolving their issues on the first contact.

• 26% of U.S. customers lose trust in brands due to poor service.

• Only 8% of customers agree that brands provide excellent customer service, contrasting sharply with the 80% of brands who believe they do.

Customer Retention Statistics by Churn Rate

• The average company loses 10-25% of its customers each year.

• The average customer retention rate across all industries is approximately 75.5%.

• The media and professional services sectors boast the highest retention rates globally at 84% each.

• Industries such as hospitality, travel, and restaurants report the lowest retention rates at 55%, followed by retail at 63%.

• The average annual customer retention rate for the SaaS sector ranges between 50-68%.

Customer Retention Statistics FAQ

1. What is the average customer retention rate?

   The average customer retention rate is approximately 75.5%. This is the global average across various industries, with the media and professional services sectors showing the highest rates at 84%.

2. What percentage of a company’s revenue comes from existing customers?

   65% of a company’s revenue is derived from existing customers. This is attributed to their higher likelihood of making additional purchases.

3. How do you calculate a churn rate?

   Churn rate is calculated by dividing the number of customers at the end of a period by the number at the beginning, then multiplying by 100.

4. How do you calculate customer LTV?

   Customer LTV is calculated by multiplying customer value by the average customer lifespan.

5. How does improving customer retention by 5% impact profits?

   Improving retention by 5% can lead to a profit increase of 25-95%.

6. What percentage of customers will switch to a competitor after one bad experience?

   72% of customers will switch brands after one negative experience.

Conclusion

Customer retention is frequently underestimated by businesses, with only 18% prioritizing it over customer acquisition. However, enhancing retention rates can yield substantial benefits: a mere 5% increase can result in profit growth of 25-95%.

Moreover, current customers are significantly more likely to make additional purchases—with a 60-70% chance of doing so—compared to just 15-20% for new customers. Notably, 65% of a company’s revenue comes from repeat customers.

Retaining existing customers is also more cost-effective than acquiring new ones, costing six to seven times less. Additionally, businesses lose over $75 billion each year to customer attrition due to inadequate service.

References

1. Hoovers. “The Age of the Customer: Focus on Retention.” Accessed on May 3, 2022.

2. Forbes. “Businesses Lose $75 Billion Due To Poor Customer Service.” Accessed on May 3, 2022.

3. Smile.io. “What is a Repeat Customer and Why are They Profitable?” Accessed on May 4, 2022.

4. Invesp. “Customer Acquisition Vs. Retention Costs [Infographic].” Accessed on May 4, 2022.

5. Statista. “Share of Customers in the United States Who Did More Business with Companies Due to Good Customer Service From 2022.” Accessed on May 4, 2022.

6. Bain & Company. “The Value of Online Customer Loyalty and How You Can Capture It.” Accessed on May 4, 2022.

7. Statista. “What Are the Top Three Factors That Impact Customer Satisfaction with Your CX Services?” Accessed on May 4, 2022.

8. Statista. “Business Spending on Customer Loyalty Ecosystem Worldwide in 2019, by Type.” Accessed on May 4, 2022.

9. Statista. “Average Loyalty Program Membership in the United States From 2015 to 2021.” Accessed on May 4, 2022.

10. American Express. “Retaining Customers Vs. Acquiring Customers.” Accessed on May 4, 2022.

11. Harvard Business School. “The Economics of E-Loyalty.” Accessed on May 4, 2022.

12. FreshLime. “56% of Customers Stay Loyal to Brands That Understand Their Preferences.” Accessed on May 4, 2022.

13. KPMG. “The Truth About Customer Loyalty.” Accessed on May 4, 2022.

14. Business Wire. “No Second Chances: New Northridge Group Study Reveals 72% of Consumers Will Likely Switch Brands After Just One Bad Service Experience.” Accessed on May 4, 2022.

15. Statista. “Reasons Why Consumers Would Lose Trust in Brands in the United States.” Accessed on May 4, 2022.

16. Chron. “What Percentage of Customers Does a Business Lose Each Year?” Accessed on May 4, 2022.

17. Statista. “Customer Retention Rate of Businesses Worldwide.” Accessed on May 4, 2022.

18. Woopra. “Churn Rate Vs. Retention Rate: How to Calculate These SaaS KPIs.” Accessed on May 4, 2022.

19. Qualtrics. “How to Calculate Customer Lifetime Value.” Accessed on May 4, 2022.

Author

Abby McCain

Abby is a writer who is passionate about the power of story. Whether it’s communicating complicated topics in a clear way or helping readers connect with another person or place from the comfort of their couch. Abby attended Oral Roberts University in Tulsa, Oklahoma, where she earned a degree in writing with concentrations in journalism and business.