Customer Retention Statistics for 2023

While teams targeting customer retention have excellent opportunities to innovate and connect in new ways because of the impending recession, shifting customer priorities and preferences, and new technology, however, they must first comprehend the market and the industry.

It also needs to be said that customer retention has long been touted to be the most important goal for marketers in the coming years. In 2023, it becomes even more important as today the world is flooded with various options that your customer can easily flock to if they find even the slightest bit of deficiency in the product that you are offering.

Keeping that in mind, in this blog we will look towards important customer retention statistics for 2023 that will help you retain your customers the best.

What is customer retention and why is it important?

The ability of a company to maintain current clients and continue to make money from them is known as customer retention. Businesses employ a variety of strategies to turn new customers into loyal patrons. Stated differently, customer retention enables a company to optimize the lifetime value and profitability of an existing client.

Maintaining a loyal customer base is essential to encouraging recurring business and continuous value from your clientele. A commonly referenced generalization states that acquiring a new client incurs five times the expense compared to keeping an existing one. Understanding the loyalty and level of satisfaction of your customers is one of the most crucial aspects of increasing customer retention. Companies must also be aware of any practices that can alienate current and new clients.

Important Customer Retention Statistics for 2023

Customer Support: This is support and help provided to clients prior to, during, and following their purchase of a good or service is referred to as customer service.

There’s a good chance that clients who buy a certain product or use a particular service will eventually run into issues or become confused. They contact agents known as Customer Support Representatives to report problems, submit requests, or ask inquiries in order to get their problems resolved. These delegates make sure that assistance and responses are given right away. Here are a few statistics regarding customer support that help understanding how to increase customer retention:

According to 81% of consumers, having a good customer service experience makes them more likely to make another purchase. (Zendesk)
According to 95% of consumers, customer service has an impact on their brand loyalty. Professional agents, self-service, and ease of access are cited as key components. (KIND)
customer service has a positive effect on the growth of their company, according to 64% of leaders. (Zendesk)
Out of sixty percent of leaders, customer service increases client retention. (Zendesk)

Role of Technology: Technologies like chatbots, self-service portals like knowledge bases, and data analysis tools that help predict customer needs and enhance product and service offerings can help businesses automate some customer service-related processes.

Here are a few statistics to help understand the role of technology in aiding customer retention in 2023:

1) The majority of customers—nearly 80%—still choose phone contacts as their method of customer service. (Calabrio)

2) Free shipping is cited by 18% of customers as the most crucial consideration when making a purchase. (Location)

3) Among customers, 73% desire seamless channel switching. (Zendesk)

4) A whopping 94% of clients say they had a good experience with video support. (Hubspot)

6) In the previous six months, over 80% of customers have shopped through at least three channels. (PwC)

7) According to 78% of consumers, a company’s environmental policies affect their choice to do business with them. (Salesforce)

How Important Is Personalization for Customer Retention?

Creating tailored experiences helps you connect with customers on a deeper level, demonstrating that you understand their needs and can deliver relevant and meaningful interactions. For these reasons, personalization should be a key component of any customer retention management strategy; retaining customers requires figuring out how to make their shopping experience more unique in order to build trust and loyalty and lower attrition.

How Having a Robust Customer Service Can Help with Customer Retention?

Answering inquiries from clients, managing grievances, arranging maintenance, and reacting to product evaluations are all examples of customer service. In actuality, a customer’s interaction with a team member can be considered a service experience whenever it occurs. It’s how you demonstrate that you live up to your brand promise as much as the caliber of your goods and services.

How Does SubscriptionFlow Help in Customer Retention?

SubscriptionFlow is an effective software that helps companies grow their clientele and revenue through its usage of analytics and insights on customer behavior, churn rate, lifetime value. By using SubscriptionFlow, businesses can also create customized offers, discounts, and incentives for their customers based on their needs and preferences. They can also increase subscription revenue, decrease customer attrition, and foster greater customer loyalty.

Book a demo with SubscriptionFlow now to implement these statistics into your customer retention strategy!