The market for B2B customer service is projected to grow by 22% in 2021. Customer retention statistics are used as a crucial component of marketing campaigns designed to keep customers happy and coming back after their needs have been met. This article will give you some ideas on how best practices can be implemented into your own business strategy today!.
The “customer loyalty statistics 2021” is a set of 70 powerful customer retention statistics that will help you know what to expect in the future. These statistics are based on research done by Forrester, which is considered to be one of the leading consumer technology research and advisory firms.
The first guideline of every business should be to build a loyal client base that will feed the firm and remain for a long time. By concentrating on retention, your company may save expenditures and increase marketing by having these loyal consumers suggest your brand to their friends and family.
If your company still doesn’t have a solid customer retention strategy in place, we’ve compiled a collection of customer retention statistics to demonstrate the advantages it may provide.
Statistics on Customer Retention in General
- Customer acquisition is the emphasis of 44% of firms, while customer retention is the goal of just 18%.
- Excellent customer service is said to have a major impact in client retention by 89 percent of businesses.
- Customer lifetime value is a term that 76 percent of businesses feel is crucial to their business.
- Only 42% of businesses, on the other hand, can effectively calculate their customers’ lifetime worth.
- Selling to an established client has a 60-70 percent chance of being successful.
- The chances of selling to a new consumer range from 5% to 20%.
- Existing consumers are 50% more inclined to try a new product from your company.
- Customers who have done business with you before are also 31% more likely to spend more on their average order value.
- In the 31st to 36th month of a relationship with a business, the typical devoted consumer spends 67 percent more than in the first six months.
- Today, 55% of millennials say they are more brand loyal than 39% of customers aged 35 and over.
- Millennials are loyal to their preferred companies in 44 percent of cases.
- Quality items, according to 77 percent of customers, are what keep them loyal to a company.
Customer Retention through Online Channels
- Paid search, such as Google Ads and PPC, accounts for barely 2% of client retention marketing efforts.
- Client acquisition is the most prevalent application of online display advertising, with just 4% of companies using it for customer retention.
- For customer retention, 6% of marketers concentrate on SEO initiatives.
- Web retargeting is a retention approach that 22 percent of marketers find to be more effective.
- For 28% of marketers, social media marketing is their preferred method of client retention.
- According to 39% of marketers, mobile and web push notifications encourage consumers to return.
- For client retention, 44% utilize mobile applications as their primary marketing tool.
- A good email marketing plan aimed at client retention is developed by 52 percent of businesses.
- Mobile messaging is the most effective client retention tactic for the majority of marketers (58 percent).
Customer Retention and the Effectiveness of Digital Marketing Techniques
- When it comes to client retention tactics that have been proved to work, email marketing is 56 percent more successful than any other way, making it the most effective option.
- Social media marketing, which is 37 percent more successful for consumer retention than email marketing, comes in second.
- Customer retention is 32 percent successful when using content marketing.
- Referral marketing is responsible for 26% of successful retention digital marketing methods.
- The efficacy of search engine optimization (SEO) is 13%.
- The efficacy of display advertising is merely 12%, which is somewhat lower than that of SEO.
- The efficacy of mobile advertising is barely 8%.
- Paid search, video advertising, and affiliate marketing are the marketing methods with the lowest client retention scores, each earning less than 7% efficacy.
Statistics on Loyalty Programs
- Customers who are members of a company’s loyalty program spend at least once a month with that brand.
- Customers join loyalty programs for a variety of reasons. 57.4 percent do so to save money, while 37.5 percent do so to obtain rewards.
- According to 64% of merchants, loyalty programs are the greatest way to engage with consumers.
- Consumers pick their shop depending on where they can earn customer loyalty awards and points, according to 69 percent of customers.
- Customers modify their behaviors 50% of the time merely to advance in a loyalty program they engage in.
- After joining a reward program, 46% of consumers agree to spend more.
- Royalty programs account for 76% of a customer’s connection with a company.
- Joining a loyalty program, according to 83 percent of respondents, will keep them making purchases at that firm.
- Seventy-four percent of consumers have used travel rewards programs to make trip purchases.
- Loyalty programs in restaurants boost visits by 35%.
- Customers appreciate receiving unexpected presents from loyalty programs, with 67% considering it a make-or-break element.
Statistics on Customer Retention Issues
- Customer retention is the main difficulty for 61% of retail businesses.
- Due to a lack of client loyalty, the typical American firm loses 23 percent to 30 percent of its customers each year.
- When companies don’t take customer retention seriously, they lose 9% of their consumers to the competition.
- Poor customer service has resulted in a 37 percent increase in customer retention since 2016.
- Customers’ feelings that no one is listening to them is a $75 billion issue for businesses all across the United States.
Statistics on Customer Retention Behavior
- Customers leave 14% of the time because the company doesn’t know how to manage their problems.
- Customers that get their issues handled quickly have an 82 percent likelihood of making a purchase.
- The retention percentage for those who have had their issue handled (for a period of time after complaining) is 54 percent.
- Those that complain have an average retention rate of 19 percent, regardless of whether their issue is handled or not.
- Customers who have serious problems with a brand but do not complain have a retention rate of 9%.
- Customers feel salesmen don’t ask enough questions about their requirements, according to 97 percent of them.
- Customers, on the other hand, believe that salesmen speak too much.
Statistics on Retention Rates for Mobile Apps
- On average, 75% of mobile app users abandon their devices after the first day.
- In 2019, the average mobile app user retention rate was 32 percent, down from 38 percent the previous year.
- WeChat boasts the greatest user retention rate of any Chinese app, with up to 98.3 percent retention in only seven days.
- The retention rate for comic applications is 33.8 percent on day one, but it lowers to 9.3 percent after 30 days.
- After 30 days, 13.33 percent of users are still using the app, indicating that news applications have double-digit retention rates.
- In 30 days, media and entertainment has a 43 percent retention rate, and in 90 days, it has a 24 percent retention rate.
- In 30 days, eCommerce/retail applications have a 37 percent retention rate, and in 90 days, they have an 18 percent retention rate.
- The retention rates of travel and leisure mobile applications are fairly comparable to those of eCommerce apps, with 36 percent in 30 days and 18 percent in 90 days.
- Customer retention rates for technology applications are 33 percent after 30 days and 19 percent after 90 days.
- Gaming applications had the lowest retention rate, with a 27 percent retention rate after 30 days and just 10% after 90 days.
Customer Retention Rates in Different Industries
- Because customers are overwhelmed with alternatives from rivals, retail has a customer retention rate of 63 percent on average.
- Banks have a high percentage of customer retention (75 percent ). Most individuals stay with the same bank for decades, switching only when life circumstances or relocation force them to.
- Telecom businesses have a client retention rate of 78 percent and place a strong emphasis on customer loyalty and incentive programs.
- Customer retention is 81 percent for IT services that concentrate on client success.
- Customers normally remain with one insurer, therefore the insurance business has an 83 percent retention rate.
- Professional service companies tend to establish tight relationships with their clients, which is why they have one of the greatest customer retention rates of any industry, at 83 percent.
- The media sector has an average retention rate of 84 percent and targets enormous numbers of clients with minimal personalisation.
Is Customer Retention the Most Important Factor in Business Success?
It’s no secret that most established companies depend on their current client base to keep the firm afloat and generate new revenue. Did you know that existing customers account for 68 percent of all new consumers?
As a result, many businesses are focusing more than ever on client retention methods, particularly customer loyalty programs. Two-thirds of businesses have a separate department devoted to customer loyalty and retention, with another 13% planning to do so shortly.
Because it costs five to ten times more to acquire a new client than it does to maintain an existing one, nurturing loyal consumers is a potent method for organizations to expand.
It’s time to prepare your client retention strategy after reviewing this collection of customer retention data. Remember that concentrating on customer service and retention rather than acquisition is critical to building a loyal client base that will act as little brand ambassadors and continue to purchase from your company.
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Statista Premium and the following sources were used to compile our data:
Statista Invesp Altfeldink HMI Geckoboard Profitwell Loyalty360
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The “average customer retention rate e-commerce” is a statistic that shows how long customers stay with an online retailer. The statistic has been increasing over the years and will continue to increase in the future.
- average customer retention rate by industry
- explain why it is more expensive to find a new customer than to retain a current customer
- 82 of companies agree that retention is cheaper than acquisition
- a 5% increase in customer retention can boost profits by 25% to 95%.
- 65% of a company’s business comes from existing customers.