Average Customer Retention Rate By Industry (2024 Data)

The average customer retention rate is estimated to be around 75.5%, and many major industries have a retention rate surrounding this number.

With 84%, the media industry has the most impressive retention rate, while the hospitality industry registers the lowest retention rate of 55%.

This article features some key statistics regarding the average customer retention rate across various industries, as well as customer retention drivers and customer retention challenges.

Average Customer Retention Rate: Top Picks (2024)

  • The average customer retention rate recorded over all industries is 75.5%. 
  • The media and professional services industries have the highest retention rate of 84%.
  • The automotive industry and the insurance industry have an average customer retention rate of 83%. 
  •  Facebook has the largest customer retention rate of 69.6%
  • The IT service industry has an average retention rate of 81%. At the same time, the average retention rate in the construction and engineering sector is 80%. 
  • The financial services and Telecommunication industry is reported to have an average retention rate of 78%. They are followed by the healthcare industry and IT& software industry, with a retention rate of 77%. 

What Is The Average Customer Retention Rate 

  1. The average customer retention rate recorded across all industries is 75.5%. 

The average customer retention rate may vary depending on the industry, products, niche, and more of a business or brand.

Customer Retention Rate By Industry

2. The hospitality, travel, and restaurant industry has the lowest customer retention rate, around 55%.

3. The banking sector held a customer retention rate of 75%, similar to the average customer retention rate.

The following table displays the retention rate of customers in different industries. 

Customer Retention Rate By Industry
IndustryCustomer Retention RateDifference From Average Customer Retention Rates 
Media84%Increased by 9%
Professional Services84%Increased by 9%
Automotive & Transportation83%Increased by 8%
Insurance83%Increased by 8%
IT Services81%Increased by 6%
Construction & Engineering80%Increased by 5%
Financial Services78%Increased by 3%
Telecommunications78%Increased by 3%
Healthcare77%Increased by 2%
IT & Software77%Increased by 2%
Banking75%– 0%
Consumer Services67%Decreased by 8%
Manufacturing67%Decreased by  8%
Retail63%Decreased by  12%
Hospitality, Travel, Restaurants55%Decreased by  20%

Source: Statista 

Media And IT Services Customer Retention 

4. The media industry has the highest customer retention rate of around 84%. 

5. Conversely, the IT and Software industry exhibits a customer retention rate of about 77%.

6. The average retention rate of social media apps is approximately 8.7%. 

7. Facebook has the largest customer retention rate of 69.6%, which is the highest among the social media apps. 

The following table displays the 24-month usage retention rate of the social media apps.  

Social Media App24-Month Usage Retention Rate Compared To The Average Retention Rate Of Social Media Apps
Facebook69.6%Increased by 60.9%
VKontakte52.7%Increased by 44%
Instagram39.1%Increased by 30.4%
Pinterest37.5%Increased by 28.8%
Kakaotalk35.6%Increased by 26.9%
Snapchat30.2%Increased by 21.5%
Twitter22.9%Increased by 14.2%
Average Social App8.7%

Source: Liftoff 

8. Mobile apps have an average retention rate of 43% within the first month. While in the second month, the retention rates drop to 33%. 

The following table displays the retention rates of mobile apps within the first three months. 

MonthRetention Rate Of The Average User

Source: Liftoff 

9. Comic apps have an average day 1 retention rate of 33.8%, which drops to 9.3% by day 30.

10. Education apps have the lowest day-one retention rate (18.8%) and day-30 retention rate (2.5%).

The following table displays the mobile app retention rate by app type. 

App Type Day 1 Retention Day 7 Retention Day 30 Retention Day 1 to Day 30 Drop-Off
Comics33.8%16.4%9.3%Decrease by 24.5%
News33.1%19.8%13.3%Decrease by  19.8%
Gaming – Hyper Casual32.3%8.3%2.6%Decrease by  29.7%
Gaming – Casual32.3%11.1%4.5%Decrease by  27.8%
Gaming – Social Casino32.1%12.6%5.4%Decrease by  26.7%
Gaming – Midcore31%7.9%2.3%Decrease by  28.7%
Gaming – Hardcore28.7%8.7%3.1%Decrease by  25.6%
Social26.3%9.3%3.9%Decrease by  22.4%
Books25.1%11.1%6%Decrease by  19.1%
Shopping – e-Commerce24.5%10.7%5.6%Decrease by  18.9%
Entertainment – Streaming24.4%9.9%4.7%Decrease by  19.7%
Entertainment – All22%8.2%3.8%Decrease by  18.2%
Music20.4%8.1%4.2%Decrease by  16.2%
Medical20%7%3.5%Decrease by  16.5%
Education18.8%6.3%2.5%Decrease by   16.3%

Source: Business Wire, Similarweb

Financial Services Customer Retention Rate

11. The average customer retention rate for financial services is recorded to be 78%. At the same time, the banking industry has a retention rate of 75%. 

Moreover, Americans have used their primary bank account for approximately 16 years. Besides, only 4% of the consumers switch banks. 

The following table displays the top drivers for the bank’s customer retention rates. 

Requirement (Top Drivers)Percentage Of Customer Retention
Product bundles31%
Bonuses for loyal customers37%
Use of innovative technologies53%
Strong branch presence59%
Competitive prices60%
Segmented offerings based on the consumers’ needs68%
Transparent products78%
Integrated multichannel sales79%
High-quality data and data analysis82%
Strong Brands90%

Source: Business Wire, Statista, Liftoff, Adjust

12. Traditional banking has a short-term retention rate of 30.6%. Similarly, the investment sector has a short-term retention of 25.6%. 

The following table displays the retention rates of different sectors in the banking industry. 

App TypeDay 1 Retention Day 7 RetentionDay 30 RetentionDay 1 To Day 30 Drop Off.
Finance – Financial Services21.8%9.7%6.1%15.7%
Business22.4%10.1%5%Decrease by 17.4%
Finance – All22.7%9.7%5.8%Decrease by 16.9%
Finance – Investments25.6%12.5%7.1%Decrease by 18.5%
Finance – Digital Banking30%15.6%10.2%Decrease by 19.8%
Finance – Traditional Banking30.6%18.6%13.4%Decrease by 16.2%
Utilities18.3%6.8%3.4%Decrease by 14.9%

Source: Liftoff

13. Organic payment services’ day 1 retention rate is around 16%, and paid payment apps have 14% day 1 retention rate. 

14.  Paid payments apps witness an 11% higher 30-day drop-off.

The following table displays the global payment app customer retention rates. 

Day Organic Payment APPPaid Payment App

Automotive &Transportation Customer Retention Rate

15. The Automotive and Transportation Industry has an average retention rate of 83%. The industries have the second highest retention rates among all the industries. 

16. Transportation apps have a 45% 90-day retention rate, and automotive apps have a 57% retention rate. 

The following table displays the retention rate of consumers on transportation and automotive apps. 

Day Transportation AppAutomotive App
30-Day Retention50%67%
90-Day Retention45%57%
1-Year Retention33%32%
Day 30 to 1-Year Drop-OffDecreases by 17%Decreases by 35%

17. Automotive apps have 17% higher 30-day retention rates than transportation apps. On the contrary, transportation has a 1% higher retention rate in terms of customer retention for one year. 

Telecommunication Customer Retention Rate

18. The telecommunication companies experience an average customer retention rate of 78%.

The higher retention rates in the Industry are due to long-term contracts and customer loyalty incentives. Hence, switching companies in the telecom industry is comparatively difficult.

19. On the other hand, mobile apps are a big part of modern telecommunication, but they have lower retention rates than the Industry’s retention rates. This is due to the ease of installation and uninstallation of the apps. 

The following table shows the global mobile app user retention rate over the years. 

YearApp Retention Rate Change In Retention Rate
201334%Increased by 3%
201439%Increased by 5%
201534%Decreased by 5%
201638%Increased by 4%
201737%Decreased by 1%
201838%Increased by 1%
201932%Decreased by 6%

20. The United States reported a day 1 mobile app user retention rate of around 26.5% and a 3.4% day 30 retention rate.

21. Taiwan had the highest day 1 mobile app user retention rate of around 29.5%.

The following table displays the mobile app retention rates in different countries worldwide. 

CountryDay 1 Retention RateDay 30 Retention Rate
United Kingdom27.4%3.8%
United States26.5%3.4%
Saudi Arabia23.7%2.3%

Source: Statista

The major apps are included in the News, Social, and Communication sections. Let us take a look at the retention rates of apps in these sectors over a short period of time. 

DayNews AppSocial AppCommunication app
Day 1 Retention33.1%26.3%22.4%
Day 7 Retention19.8%9.3%10.1%
Day 30 Retention13.3%3.9%5%
Day 1 to Day 30 Drop-OffDecreased by  19.8%Decreased by 22.4%Decreased by  17.4%

Sources: Liftoff

Consumer Services, Hospitality, And Travel Customer Retention 

Consumer services and the hospitality, travel, and restaurant industries have the lowest consumer retention rates.

22. The consumer services industry reports a customer retention rate of around 67%.

23. Hospitality, travel, and restaurant industries have an average customer retention rate of 55%.

Hospital and travel apps have around 31% retention rates, while transportation apps have 33% retention rates in the one-year long run.

The following table displays the retention rates of the Hospitality/ tourism and Transportation industries. 

DayHospitality/Tourism IndustryTransportation Industry
30-Day Retention50%50%
90-Day Retention44%45%
1-Year Retention31%33%
Day 30 to 1-Year Drop-OffDeclined by 19%Declined by 17%

The customer retention rates can be calculated from the retention rates of different types of consumer and hospitality apps. Here are the retention rates of some apps from these sectors. 

24. Gaming-social casino apps have the highest day-1 customer retention rate of 32.1%, dropping to 5.4% in 30 days.

25. The travel apps have the lowest 30-day retention rate of about 3.6%.

App TypeDay 1 RetentionDay 7 RetentionDay 30 RetentionDay 1 To Day 30 Drop-Off
Gaming – Social Casino32.1%12.6%5.4%Decreased by 26.7%
Dating29.6%11.4%5.1%Decreased by 24.5%
Sports27.6%15.3%9.9%Decreased by  17.7%
Social26.3%9.3%3.9%Decreased by 22.4%
Lifestyle20.9%8.7%4.5%Decreased by  16.4%
Music20.4%8.1%4.2%Decreased by  16.2%
Health & Fitness20.2%8.5%4%Decreased by 16.2%
Travel20%7.6%3.6%Decreased by 16.4%
Productivity17.2%7.2%4.1%Decreased by 13.1%
Food & Drink16.5%7.2%3.9%Decreased by 12.6

Retail Customer Retention 

26. The retail industry’s customer retention rate is 63%, which is one of the lowest in all industries. 

The retail industries rely on social media to boost their sales and retain customers. Besides, most retailers use stories to interact with customers and to maintain customer retention rates. They are one of the most effective ways to communicate with consumers. 

27. The brands that share one Instagram story daily have a 100% retention rate.

28. Brands sharing 15 Instagram stories per day have a retention rate of 59.4%.

The following table displays the breakdown of the retention rate for Instagram stories. 

Number Of Instagram Stories Shared By Retailers Retention RateDifference Between One Less Story
1 per day100%
2 per day85.21%Decreased by 14.79%
3 per day79.04%Decreased by 6.15%
4 per day75.71%Decreased by 3.35%
5 per day71.79%Decreased by 3.92%
6 per day69.03%Decreased by 2.76%
7 per day67.51%Decreased by 1.52%
8 per day66.18%Decreased by 1.33%
9 per day64.6%Decreased by 1.58%
10 per day63.2%Decreased by 1.4%
11 per day62.17%Decreased by 1.03%
12 per day60.11%Decreased by 2.06%
13 per day59.28%Decreased by 0.96%
14 per day60.92%Decreased by 1.64%
15 per day59.4%Decreased by 1.52%

29. The shopping marketplace apps have a day 1 retention rate of 33.7% and experience a drop of 25% from day 1 to day 30.

30. Food and beverage apps exhibit a day 1 retention rate of 16.5% and a day 7 retention rate of 7.2%.

The following table shows the effect of mobile apps on short-term retention. 

Retention Shopping – Marketplace AppShopping – e-Commerce AppFood & Drink App
Day 1 Retention33.7%24.5%16.5%
Day 7 Retention16.1%10.7%7.2%
Day 30 Retention8.7%5.6%3.9%
Day 1 to Day 30 Drop-OffDecreased by 25%Decreased by 18.9%Decreased by 12.6%

Source: Business Wire, Socialinsider, Lift off. 

Customer Retention Drivers

31. Business spending on loyalty management reached approximately $75 billion worldwide. 

32. 89% of business owners used emails as a delivery method for customer retention.

33. 63% of marketers use social media engagement for customer retention, while 55% use direct mail.

34. On the other hand, the use of TV ads has decreased, and only 7% of marketers use them to drive customer retention.

35. Around 42% of marketers used Search engine optimization (SEO) for customer retention.

The following table displays the list of delivery methods used by marketers in the United States for customer retention. 

Rank Delivery Method Used For Retention Percentage Of Marketers Using Method
2Social media engagement63%
3Direct mail55%
4Online advertising49%
5Search engine optimization (SEO)42%
6Social media advertising41%
7Mobile Marketing33%
9Search engine marketing29%
10Affiliate marketing26%
11Telemarketing (outbound)21%
12Insert media17%
13Direct response space16%
14Direct response radio8%
15TV ads (non-infomercial)7%
16Direct response TV3%

Source: Statista

36. Customer satisfaction plays a major part in customer retention, and good customer service in the United Nations has led to 60% customer retention. 

The following table displays the retention rate of customers over the past years due to good customer service. 

YearPercentage Of Customer Retention Rate

37. Conversely, 70.7% of the people said that “ease of resolution” is one of the top three most important customer experience service factors. 

The following table displays the list of factors impacting customer satisfaction. 

RankFactor Impacting Customer Service SatisfactionPercentage Of Marketers 
1Ease of solution (customer effort)70.7%
2Agent knowledge52.5%
3Ease of contact (choice/accessibility)42.8%
4Time taken to fix queries40.5%
5Organizational procedures23.9%
6issues recur frequently/feedback goes unanswered22%
7Digital medium/function doesn’t work16.2%
8Preferred channel not available10.8%
9Can’t trust services will be delivered9.2%
11Difficult to communicate with a human  3.6%

Moreover, loyalty programs are another important driver of customer retention.  

Loyalty programs are a way of rewarding recurring customers and valuing their loyalty.

Let us take a look at some of the important features of loyalty programs. 

Loyalty Program FeatureImportanceImportance In 5 YearsDifference
Access to expert advice/assistance from humans12%16%Increased by  4%
Forging cross-industry partnerships13%18%Increased by 5%
Perks and services19%14%Decreased by 5%
Building a community among consumers20%26%Increased by 6%
Social impact/sustainability24%32%Increased by 8%
Experiences and emotional brand connection33%35%Increased by 2%
Social media engagement38%27%Decreased by  11%
Economic rewards42%26%Decreased by 16%
Personalized offers42%45%Increased by 3%
Ease of use45%39%Decreased by  6%
Digital and omnichannel access48%53%Increased by 5%
Exceptional Customer Service51%50%Decreased by 1%

Besides improving customer loyalty, business executives prefer to invest in technology. 

Investments in technology include Mobile capability, Customer service chatbots, APIs, and Artificial intelligence/machine learning.

Here is a breakdown of the investments made by business executives in order to improve customer retention. 

RankTechnology Business Executives Invested In Business Executives Making Investment
1Mobile capability (e.g., digital wallet)52%
2Customer service chatbots38%
4Artificial intelligence/machine learning25%
4Geolocation/proximity-based services25%
6Cloud computing22%
7Virtual assistants (e.g. Alexa, Siri)13%
8Natural language processing10%
9Augmented or virtual reality8%

Source: Business Wire, Statista, NTT

38. 83% of U.S. consumers reported good customer service as a leading factor in driving brand loyalty and supporting customer retention.

Here is a table showing the factors affecting customer retention and brand loyalty:

Factors Affecting Customer Retention Rate
FactorPercentage of consumers
Good customer service83%
Wide range of product options82%
Product availability82%
Great product or service81%
Robust data privacy 80%
Brand’s mobile app and website72%
Loyalty programs70%
The brand works hard to build a relationship with their clients62%

Source: Statista

Good Customer Retention Statistics

39. A company’s top 10% of most loyal customers tend to spend three times more on the brand per purchase than the other 90% of the consumers. 

Additionally, the top 1% of loyal customers spend five times more than the other 99% of the customers.

40. The probability of a new customer purchasing is just 5% to 20%. Comparatively, the probability of an existing customer making a purchase is recorded to be 60% to 70%. Besides, existing customers spend around 31% more and are 50% more likely to try a new product from your business. 

41. 60% of consumers in the United States say that they are ready to purchase more products from a company after a positive customer experience. 

42. 31% of consumers switched brands because a corporation lied about the product’s effectiveness.

43. 62% of customers will not purchase from a retailer that does not provide free returns. 

In addition,  84% of consumers will not buy from the same retailer again after a bad return experience.

Customer Retention Statistics By Retention vs Acquisition

44. Acquiring a new customer can be five times more costly than required while retaining a customer. 

45. 18% of businesses prioritize customer retention over customer acquisition. 

Besides, 44% of the companies focus more on customer acquisition. Further, the remaining 38% of the businesses focus equally on both. 

46. Around 89% of businesses reported delivering top-notch customer service plays a major role in customer retention.

Customer Opinions Statistics

47. Almost 56% of the consumers said that they stay loyal to a brand that understands them. 

48. 49% of customers trust online reviews as much as personal suggestions from family and friends.

49.  66% of customers will write a positive online review after a good experience,, and 86% will suggest the brands to their friends.

50. Companies in the United States lose nearly $83 billion due to poor customer service every year.

51. 75% of consumers favor companies that offer rewards, and 91% are more likely to buy from brands that give relevant and attractive offers.

The following table shows the seven factors that keep customers loyal to their brands. 

Sr.NoFactorPercentage Of Consumers That Consider It An Important Factor For Brand Loyalty 
1Product Quality74%
2Value for money66%
3Product consistency65%
4Customer service56%
5Easy shopping experience 55%
6Selection/Assortment of products55%

52. On average, the United States consumers were part of 16.6 loyalty programs in 2022. Consumers were using only 7.6 programs on average.

The table below shows the average loyalty program membership in the United States over the years:

YearMembershipActive use

Source: Statista

Customer Retention Failure Statistics

53. 72% of the customers said that they would switch brands after they faced a bad experience with them. However, 53% of the consumers reported that they were able to solve their problem the first time they reached out to the company. 

54. 26% of U.S. consumers said that they lost their trust in the company after facing a bad experience with their customer service. 

55. 39% of customers say they won’t spend money on a company that doesn’t offer a personalized experience.

56. Around 14% of the shoppers will leave a business that is unable to deal with negative interactions properly. 

Customer Retention Challenges

57. Customer retention is the biggest challenge for 61% of companies.

58. 75% of global consumers want to interact with a real person, and around 59% feel that companies have lost touch with the human aspect of customer experience.

60. 9% of businesses tend to lose their customers to competitors when they do not take customer retention seriously. 

61. The customer retention loss has risen by 37% due to the poor customer service provided by the businesses. 

Average Customer Churn Rate

62. The average customer churn rate ranges between 5% and 7%.

63. The wholesale industry has the highest churn rate of over 56%. 

The energy and utilities industry reports the lowest churn rate of 11% and the highest retention rate of 89%.

Here is a table showing the median customer churn rate by industry:

Average Customer Churn Rate
IndustryCustomer churn rate
Consumer packaged goods40%
Professional Services27%
Financial Services19%
Industry Services17%
Computer Software14%
IT Services12%

Source: Customer Gauge

Related Read:

Conclusion: Average Customer Retention Rate Is 75.5% By Industry In 2024 

Customer retention is much more important than customer acquisition, and businesses and marketers are making more efforts to improve customer retention in 2024.

With an average customer retention rate of 75.5% across all industries, the media and professional services industries have the highest retention rate of 84%.

Providing customer satisfaction and personalized customer experience are the biggest challenges in customer retention.

This article covered the most essential statistics about the average customer retention rate, retention drivers, and challenges.

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