15 stats that demonstrate the importance of customer retention2 min readReading Time: 2 minutes
Many people focus on attracting new customers rather than retaining existing ones – because more is always better, right? But the data tells us this instinct is wrong. Actually, you can spend less energy retaining existing customers who are then more likely to go on to purchase your products and services than new customers.
Let’s take a look at 15 game-changing statistics that might transform the way you think about customer retention.
Feel the churn
Churn rates, which describe the rate of customer attrition, are a huge concern for businesses operating under a subscription model. Reducing churn rates should be a key concern of any business owner looking to maximise profits and increase growth.
1. The churn rate in global industries is as high as 30%.
2. 85% of consumers churn because of poor service.
3. The cost of acquiring new customers is 5x higher than the cost of retaining existing ones.
4. 11% of customer churn could be avoided if businesses just reached out to customers.
5.50% of customers naturally churn every 5 years.
Sell, sell, sell
Customer retention can lead to higher sales and conversions. Let’s take a look at what the data tells us about how retention correlates with sales and revenue.
6. The probability of selling to an existing customer is 60 to 70%
7. Existing customers are 50% more likely to try your business’s new product.
8. Loyal customers are worth 10x more than the value of their first purchase.
9. The top 10% most loyal customers of a company spend 3x more per purchase than the other 90%.
10. 91% of customers would consider making another purchase after a positive experience.
Marketing tactics are, of course, going to have a significant impact on your customer retention rates. Let’s consider how your tactics and strategies might impact customer retention, and what the data tells us about the best practices for customer retention.
11. 89% of companies say customer service is very important for increasing customer retention.
12. 90% of consumers will recommend a brand after engaging with it on social media.
13. 88% of customers expect brands to hasten their digital transformation as a result of the pandemic.
14. 52% of marketers use email marketing to increase customer retention.
15. 77% of people say that what makes them loyal to a brand is product quality.
Get in touch
If you want to know more about reducing churn, increasing customer retention, and maximising subscriptions with minimal effort, get in touch with us. Upzelo is a data-driven platform that enables subscription businesses to manage retention and fight churn with ease.