Great customer experience is a major competitive advantage that drives new sales and helps you retain your customers which can be challenging in the digital era. Audiences are presented with more options than ever with just the click of their phone. It’s important for businesses to address the issues that can cause churn and to understand what motivates customers to stay loyal to ultimately drive more customer retention.
Here are 15 customer retention statistics that confirm the growing need for top-notch customer service and customer experience management.
Customer Retention Facts
It costs 5 percent more to acquire a new customer than it does to keep a current one.
Customers enrolled in a loyalty program visit a company’s site 35 percent more frequently. (Thanx)
The probability of selling to an existing customer is 60-70 percent. The probability of selling to a new prospect is 5-20 percent.
U.S. companies lose $136.8 billion per year due to avoidable consumer switching. (CallMiner)
80 percent of your future profits will come from just 20 percent of your existing customers
Among B2B decision makers, lack of speed in interactions with their suppliers is the number one pain point, mentioned twice as often as price. (Temkin Group)
27 percent of small business owners estimate that 11-20 percent of first time customers don’t return to their business.
7 out of 10 consumers value having the same representative or agent help them each time they interact with the company. (Genesys)
It costs 16x more to bring a new customer up to the same level as a current one.
A mere two percent increase in customer retention can lower costs by as much as 10 percent.
A five percent increase in customer retention can lead to an increase in profits of between 25 and 95 percent.
Faced with poor customer service, 20% of consumers would complain publicly via social media. (New Voice Media)
82% of consumers have stopped doing business with a company because of bad customer service. (Zendesk)
Satisfied customers are more likely to upgrade or add services and are less likely to cancel. (Mckinsey)
Loyal customers are 5x as likely to repurchase, 5x as likely to forgive, 4x as likely to refer, and 7x as likely to try a new offering. (Temkin Group)
It’s clear, keeping a loyal customer is much cheaper than acquiring a new customer and they help grow your customer base. The more energy and ease you devote to customer relationships, the higher your customer retention.
And how can you improve your customer experience and retention today? Read our blog on 5 Easy ways to improve your customer’s experience and improve retention rates today.