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Acquiring a new customer can cost up to five times more than retaining an existing one. That’s why customer retention has become one of the most important metrics for business growth, especially for subscription-based and SaaS companies.
But how powerful is retention really? What do the numbers say?
These data-backed customer retention statistics prove just how critical it is to focus on keeping your customers around. Let’s check them out.
All these insights come from reliable industry sources like Bain & Company, Hubspot, McKinsey, Deloitte, Statista, The Finance Weekly, and more. We’ve carefully reviewed the latest reports and research to bring you the most accurate and up-to-date customer retention statistics available in 2025.
A 5% increase in customer retention can boost profits by 25% to 95%. [Bain & Company]
59% of e-commerce websites now consider customer retention their top priority, above conversion and acquisition. [Yieldify]
44% of businesses still don’t calculate their customer retention rate. [CustomerGauge]
U.S. companies could save over $35 billion annually by focusing on retaining existing customers. [CallMiner]
61% of small businesses generate over half of their revenue from repeat buyers. [BIA Advisory Services]
Brands commonly use mobile apps to retain customers — 44% of businesses use them. [Hubspot]
An ideal customer retention rate is 90% or higher, meaning 90 out of 100 customers continue doing business with your company over a given period. [Devrev]
Companies that focus on retention over acquisition are 60% more profitable. [Bain & Company]
60% of people believe that good customer service is key to customer retention. [Exploding Topics]
About 80% of businesses still rely on email marketing to assist with maintaining their client retention rate. [Emarsys]
82% of business leaders agree that customer retention is way cheaper compared to customer acquisition. [eConsultancy]
Companies that improve personalization efforts in loyalty programs can see up to a 10% growth in customer retention. [McKinsey]
Companies that focus on customer retention can be 60% more profitable compared to those that prioritize acquisition. [Deloitte]
84% is the average retention rate in the insurance industry. [Nationwide]
Retail businesses see a customer retention rate of 63%. [Exploding Topics]
Banking has a high retention rate of 75% due to long-term customer relationships. [The Finance Weekly]
SaaS companies typically retain about 35% of their customers. [Woopra]
Hospitality businesses had a 55% retention rate even before COVID-19 disrupted the sector. [Statista]
Media companies retain over 25% of their customers after two months — higher than the average across industries. [Survey Sparrow]
Fintech apps have an average retention rate of 37%, but 73% of new users churn within the first week. [ET BrandEquity]
Customer retention is more than just a performance metric. It’s a key part of growing a healthy, sustainable business. These numbers show that when you focus on the customers you already have, you create more value, drive consistent revenue, and build stronger relationships over time.
Whether you’re running a SaaS company, an online store, or a service-based business, trying to retain customers is one of the smartest moves you can make and the stats we’ve listed discuss exactly that.
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