Apr 7, 2023
Average Customer Retention Rate By Industry (Statistics)
These are the newest customer retention statistics on the internet. Keep reading to learn the average customer retention rate by industry.
Key Customer Retention Statistics
Media and professional services have the highest industry retention rates of 84%.
The hospitality/restaurants/travel industries have a 55% retention rate.
Financial/credit and cable have the highest churn rates (25%) in the U.S.
Less than 50% of all companies can obtain information about the lifetime value of their customers.
50% of millennials retain a relationship with the brands they love.
Over 40% of millennials recommend products to other users through social media.
70% of shoppers pick stores by the number of rewards they can receive for being a long-term patron.
89% of businesses believe that retention rates are made possible through the use of stellar customer service.
Customers experiencing poor service are willing to disclose their interaction with the company with multiple people.
Losing customers is expensive, with businesses losing $136 billion in lost revenue.
Customer Retention By Industry
Here’s the full list of average customer retention rates by industry:
Here’s a more in-depth look at U.S. churn rate by industry:
47 Customer Retention Statistics You Need To Know
Here are the most up-to-date customer retention statistics you need to know.
1. A little less than 50% of all companies focus on customer acquisition.
However, 18% of them focus on customer retention rates.
2. 89% of businesses claiming that customer service is a leading factor in their company's retention rates.
3. The lifetime value of customers, or their extended retention rate, is very important to 76% of all companies surveyed.
It helps to keep them organized and prepared for unforeseen issues that involve their sales and interaction with consumers.
4. 47% of organizations can measure the value of consumers using their services.
This amount could gradually decrease if more businesses engage in a "customer service first" policy.
5. The likelihood of finalizing a sale with a repeat customer is 60% at a minimum and 70% at maximum.
6. The likelihood of a company completing a sale with a new customer is 5% to 20%.
From this statistic, it's clear that businesses cater to dependable customers, though are willing to reach out to new consumers that fit within certain groups most likely to engage with them.
7. Repeat shoppers have a 50% greater chance of using new products made by businesses than new customers.
8. Dependable customers are willing to spend money in larger amounts at an amount of 31%.
9. Reliable customers will use 67% more money around the 30th month of their visitation to the establishment.
This is much higher than the beginning six months of them patronizing the business.
10. Millenials make up the highest retention rates due to their loyalty to branded products. With shoppers above 34, the percentage is 35.
11. Loyalty is unfavored by 57% of the Millennial population.
However, there are no indicators that this will increase in number.
12. Around 77% of consumers find that loyalty is driven by the quality of the product sold by a company.
13. Marking that's done through the use of social media is preferred and currently the main focus for companies to maintain or increase their retention rates.
14. About 39% of people in the marketing industry believe that smartphone and web-based notifications assist them in getting shoppers to make another purchase from their business.
15. 44% of organizations use smartphone applications as a prioritizing means to market themselves to customers that could boost the retention rate.
16. A little over 50% of promoters look into email marketing plans to keep retention levels where they want them to be.
17. Most marketers, exactly 58% of them, are using messaging applications on smartphones as a surefire way for them to get positive customer retention feedback.
18. 58% of customers will purchase items from the same business every month.
19. While most shoppers will sign up for loyalty programs for savings, some of them do it strictly for the rewards and nothing else. Still, the savings attract more loyal shoppers than the latter.
20. Retailers of all kinds claim that transactions with their shoppers are favorable when rewards programs are made a part of their shopping experience.
21. Many shoppers will pick a business to do their shopping from places that are convenient for them to use loyalty rewards.
22. Half of shoppers will deviate from their routine buy to rank up in a rewards program they already belong to. With a higher tier, the potential savings they earn could increase.
23. Around 46% of people accept using more money to buy the things that they want after signing up with a rewards program.
24. Customer and business relations are important for keeping retention rates at the desired level.
To do that, companies have used them according to what consumers want. 76% of shoppers believe that rewards programs have an active part in strengthening their connections and interaction with a company.
25. To continue their purchases with a business, 83% of consumers think that signing up with a rewards program can help.
26. Purchasing services and products in the travel industry are done with rewards programs 74% of the time.
27. Rewards programs for restaurants have become very popular with consumers and can boost customers up to 35% in higher turnout.
28. Unexpected gift rewards are favored by many customers, including people that are members of reward programs. 67% of them like such services and feel that it motivates them to stay shopping with a business.
29. Around 14% of shoppers will go and not come back to a business that is unable to properly deal with negative interactions should they arise.
30. Prompt customer service and quick remedies to problems play a role in consumers sticking to a brand. 82% of them remain loyal to the brand when these standards are met.
31. People that have to wait for a spell to get their issues resolved have retention rates that can drop to 54%.
32. 19% is the number of people that make complaints with a company, with no relevance to issues being settled.
33. Some consumers with big problems related to a business don't say anything at all. With them, retention rates tend to be the lowest. Rates can drop to as little as 9%.
34. Over 90% of shoppers believe that employees of businesses don't ask them fittingly or often enough, in general.
35. Approximately 50% of the consumers think that people working in sales and retail talk too much, either with them, other patrons, or co-workers.
36. People using smartphone applications will interact with them only one time.
It's an estimate of 75% and most will not make another visit to the application, at least on the day that it's downloaded.
37. Smartphone applications have retention rates associated with consumers also.
In 2019, the amount was 32%. It was even lower in 2018.
38. Retention rates with applications such as WeChat are high, particularly in China. In a week, the rate went to 98%.
39. On a single day, comic applications and the like have a 33% retention rate. But in a month, it goes down to only 9%.
40. New applications maintain retention rates that are above ten. Even after a month, 13% of people will use services like WeChat for massing.
41. In the media, retention rates are about 43%. This is for 30 days. For three months or 90 days, the rate drops to 24%.
42. 37% retention rates are found on E-commerce websites and applications. Again, this is for 30 days. For 90 days, it's 18%.
43. For travel applications of smartphones, the retention rate is identical to most E-commerce applications. It's 36% for a month and 18% for three months.
44. With applications in technology, there is a 33% retention rate over the span of a month, and 90 days for 19% of the rate.
45. Gaming applications have the lowest retention rates. 27% of the rates are for 30 days and 90 days is 10%.
46. 63% of consumer retention rates are questioned by people in competition with one another.
47. Banks have always maintained high retention rates (75%).
Since many people choose to stay with a bank for a long time, few need to transfer all savings to another bank.
Mobile App Retention Rates
Here’s how the most popular social apps compared in terms of mid-term to long-term user retention:
Average short-term retention for mobile apps
Mobile app retention by app type
Frequently Asked Questions
What is a good retention rate for customers?
All companies that seek to keep their existing customers should know all they can about retention rates, particularly the amount to which they are growing.
From this, businesses should aim for a 100% retention rate.
Of course, reaching this amount is nearly impossible to do, but with the right know-how and understanding of what customers want, its rates can get close to 90% or slightly above.
Home appliances that are bought in large quantities and only work with proprietary items, and the companies that build them.
However, banks are in a unique position that gives them high retention rates without having to try too hard to keep it that way.
When money accumulates in a financial account, the choice that many make is to keep it in the bank, without switching over to a new one for the movement of all money in their savings.
Therefore, it's more practical to use as few banks as possible. This results in them having the retention rates that they do, though bad service could still lower their races if it becomes unforgivably bad.
The thing that creates a good retention rate is customer service, overall. This must be paid attention to with a majority of businesses that wish to prosper or sustain themselves.
Having a widespread method of communications is a start, including web and mobile options for people that handle most shopping when away from a computer.
Another is fostering a good relationship with a minority of the customers that come to buy items from a business.
Consumers love to talk and have no problems letting others know about issues that come up that they may consider to be irredeemable. The more people having negative options about an individual business, the more likely they are to lose money.
Another contributor to good or bad retention rates is the age group of shoppers at a business. It comes as no surprise the millennials are driving the trend of sticking to one company that they trust for purchases.
Sometimes, this is for expensive items such as an iPhone. But other times, the brand could be a clothing designer or even an online seller of groceries or home merchandise.
What is a good retention rate for a website?
Retention rates for websites are usually a lot lower than companies with services outside of them. They're gauged by a percentage and the number of sayings that pass in between them.
The times are measured by either one day, one week, one month, eight weeks, or three months. Web applications rely on them a lot, especially companies with subscription-based plans. But like other retention rates, the goal should be to boost the rate as high as it can go.
Most retention rates for websites won't go higher than 50%, though some subscriptions might see this happen more than others.
Streaming websites could hold high retention rates, though they might not reach a level that's close to 90%.
The best applications with the highest retention rates tend to be those with services that are needed by users to do tasks such as VPN usage, cloud-based services, or productivity apps.
What is a good SaaS retention rate?
First, the meaning of the SaaS should be understood. It's Software as a Service, applications that have subscription plans that charge consumers on a weekly, monthly, or yearly timescale.
The retention rates for these establishments are subject to change drastically, though some can be extremely lucrative. Retention rates for SaaS are measured by a percentage and the length of the service that's bought by consumers.
If retention rates are 30% for a period of one month, this is a decent but not perfect amount. 50% for three months is an improvement.
Companies in this field aim to find consumers that are either likely to keep their subscriptions for a long time, after the initial purchasing time has expired, or are likely to resubscribe for continuing usage of the service.
What is a good e-commerce retention rate?
E-commerce retention rates are likely a blend of commercial and SaaS. They can use subscription services to gauge customers' willingness to stay with the service or other means if no subscription is available.
Still, a distinction can be formed since E-commerce can involve large corporations and small businesses. With larger companies, their retention rates are sustained through the use of perks for being for a continued relationship with the company.
In other words, more savings for spending more money with a service. Companies will incentive their shoppers with loyalty programs, always called reward programs.
These are shown to keep shoppers at their stores since savings on brands is easier to do.
Although some shoppers may decide to look for more than one business with a rewards program, those that give them the ability to rank up in tiers tend to do better at retention rates than those without such cost-saving features.
What is a good B2B retention rate?
Business to Business retention rates involve companies that do business with other companies as their customer base. The higher the rate, the better. Yet this is a simple solution to sometimes complex issues for businesses.
The issue with businesses is that some of them may not be as innovative with particular aspects as others. Bad communication could also keep retention rates down.
The more innovation that ties in a B2B, the higher its retention rate will be higher than the average.
A good B2B retention rate is one with at least a percentage of 35% or higher. Many B2B retention rates aren't above 20%. Anything higher than either of those percentages is better than the majority of B2B rates.
Conclusion
Although it may seem that retention rates are complicated things for businesses to work out, they can be made easier through a good look into issues that consumers find the most important to them.
Issues such as poor customer service, bad communication with businesses, and a lack of reward for frequent patrons of businesses can drive many consumers away from a brand.
To keep them using an establishment, companies must find out what they can do to ensure that consumers stay.
Sometimes, the answers could be niche-specific, having nothing to do with the improvement mentioned. But in most cases, creating an environment that prioritizes customer service is an important way to get positive retention rates for a long time.
There are several classifications of companies with retention rates. The most common are standard businesses. Others are web and mobile-based applications.
E-commerce organizations have begun looking into retention rates to bolster sales, as have B2B interactions with organizations being the customer.
But regardless of what kind of business is being run by employers, what their clients want can be vital to getting the highest retention rates possible.
