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Key Takeaways

  • Retention economics favor investment – Acquiring new customers costs 5-25 times more than retaining existing ones, while a 5% retention increase can boost profits by 25-95%
  • Personalization drives loyalty – Leaders in personalization generate 40% more revenue than competitors, yet 76% of consumers remain frustrated when personalization is absent
  • Omnichannel integration separates winners – Companies with strong omnichannel engagement retain 89% of customers versus just 33% for weak implementations
  • Technology enables scale – 92% of businesses now use AI-driven personalization, with CRM users 86% more likely to exceed sales goals
  • Customer experience is non-negotiable – 73% of customers will switch brands after multiple bad experiences, making reliable, integrated systems critical

The Retention Crisis: Market Reality

1. Global loyalty management market valued at $13.31 billion in 2024

The loyalty management market reached $13.31 billion in 2024 and is projected to $41.21 billion by 2032. This explosive growth reflects businesses recognizing that customer retention requires systematic investment in technology and processes. Organizations without structured loyalty infrastructure find themselves at competitive disadvantage as market expectations rise. Source: Antavo

2. U.S. companies lose $168 billion annually to customer attrition

American businesses hemorrhage an estimated $168 billion annually due to customer churn. This staggering figure underscores why retention investments deliver outsized returns compared to acquisition spending. For retailers specifically, reducing churn by small percentages translates to substantial revenue preservation without ongoing acquisition costs. Source: The Petrova Experience

3. Average eCommerce customer retention rate is 31%

E-commerce businesses face challenging retention dynamics, with average retention around 31% and benchmarks ranging from 28-38%. This reality makes integrated e-commerce platforms essential—retailers need systems that capture customer data, enable personalization, and create seamless experiences encouraging repeat purchases across digital touchpoints. Source: Envive.ai

4. Retail's 63% retention rate sits 12% below cross-industry average

The retail sector's 63% retention rate falls 12% below the cross-industry average. This gap signals that customer expectations continue outpacing retailer capabilities in personalization and service delivery. Organizations leveraging unified platforms like SuiteCommerce maintain competitive positioning by delivering consistent experiences legacy systems cannot match. Source: Exploding Topics

The Economics of Retention Investment

5. Increasing retention by 5% can boost profits by 25-95%

Research demonstrates that a 5% retention increase drives 25-95% profit improvement. This multiplier effect occurs because retained customers require no acquisition costs, purchase more frequently, and often accept premium pricing. The statistics make clear that retention technology investments deliver returns that acquisition spending cannot match. Source: Sprinklr

6. Acquiring new customers costs 5-25 times more than retention

Customer acquisition costs 5-25 times more than retaining existing customers. This cost differential explains why leading retailers prioritize retention technology investments. Organizations with integrated NetSuite CRM capabilities track customer interactions and preferences systematically, enabling personalized outreach that keeps customers engaged. Source: Endear HQ

7. Brands lose an average of $29 per newly acquired customer

Customer acquisition economics have deteriorated dramatically, with brands now losing an average $29 per newly acquired customer compared to just $9 in 2013. This 222% cost increase makes retention-focused strategies mandatory rather than optional. Retailers must maximize existing customer relationships to offset increasingly unprofitable acquisition-only growth strategies. Source: Envive.ai

8. 65% of company revenue comes from existing customers

Existing customers generate 65% of total revenue for most companies. This concentration means retention failures directly threaten the majority of business income. Organizations that centralize customer data through ERP systems gain visibility into purchasing patterns, enabling proactive retention interventions before customers defect to competitors. Source: Sprinklr

9. Existing customers spend 67% more than new customers

Bain & Company research shows that existing customers spend 67% more than new customers. This spending differential compounds over time—customers in their third year spend even more than in their second. Retailers with unified systems tracking customer history can identify high-value relationships and deliver experiences encouraging continued spending growth. Source: Marketing LTB

10. Loyal customers account for 60% of direct-to-consumer sales

For DTC brands specifically, loyal customers drive 60% of total sales. This dependence on repeat purchasers makes customer experience technology essential for DTC success. Organizations implementing BigCommerce development solutions create the seamless purchasing experiences that convert one-time buyers into loyal repeat customers. Source: Sprinklr

Customer Behavior and Expectations

11. Customers with positive experiences spend 140% more

Deloitte research reveals that customers with positive past experiences spend 140% more than those with negative experiences. This spending differential demonstrates that customer experience investment delivers direct revenue returns. Retailers with integrated systems enabling consistent, personalized experiences across all touchpoints convert this satisfaction into measurable financial performance. Source: Exploding Topics

12. 71% of customers expect personalized experiences

McKinsey research shows that 71% expect personalization, while 76% become frustrated when it's absent. This expectation gap creates both risk and opportunity for retailers. Organizations with unified customer data platforms can deliver the individualized experiences customers demand, while those with disconnected systems struggle to meet basic personalization expectations. Source: Envive.ai

13. 60% of consumers say personalization drives purchase decisions

According to Mood Media research, 60% of consumers report that personalization directly influences their purchase decisions. This influence extends across product recommendations, promotional offers, and communication timing. Retailers leveraging NetSuite automation capabilities can deliver personalized experiences at scale without overwhelming their teams. Source: Endear HQ

14. Probability of selling to existing customers is 60-70%

The probability of selling to an existing customer ranges from 60-70% versus 5-20% for new prospects. This conversion differential makes existing customer engagement dramatically more efficient than prospecting. Organizations with comprehensive customer databases can target retention campaigns with confidence that conversion rates will justify the investment. Source: Marketing LTB

15. 73% of customers switch brands after one bad experience

Zendesk research indicates that 73% will switch brands following a single negative experience. This low tolerance for failure makes system reliability and integration critical. Retailers with disconnected systems that create friction, errors, or inconsistent experiences face existential retention risks that unified platforms eliminate through seamless data flow. Source: Envive.ai

16. 68% of customer churn happens because customers feel unappreciated

NewVoiceMedia research reveals that 68% of churn occurs because customers feel businesses don't appreciate them. This emotional driver of defection requires systematic recognition and engagement programs. CRM systems that track customer history and trigger appreciation communications help retailers demonstrate the value they place on customer relationships. Source: Marketing LTB

Technology and Personalization Impact

17. 92% of businesses use AI-driven personalization

Twilio Segment research shows that 92% use AI-driven personalization to support growth objectives. This near-universal adoption means AI personalization has moved from competitive advantage to table stakes. Retailers without AI-enabled systems risk falling behind competitors who leverage intelligent automation to deliver individualized experiences at scale. Source: Envive.ai

18. Companies with strong omnichannel engagement retain 89% of customers

Aberdeen Group research demonstrates that companies with strong omnichannel strategies retain 89% versus 33% for weak implementations. This 56-percentage-point gap highlights the critical importance of integrated platforms. SuiteCommerce implementations deliver native omnichannel capabilities that connect online and offline experiences seamlessly. Source: Envive.ai

19. Personalization leaders generate 40% more revenue

According to Contentful research, personalization leaders generate 40% more revenue than competitors lacking personalization capabilities. This revenue premium justifies substantial technology investment. Organizations that centralize customer data and leverage it for personalized experiences across touchpoints capture this premium while building competitive moats. Source: Endear HQ

20. 83% of sales teams using AI saw revenue growth

Salesforce State of Sales research reveals that 83% using AI experienced revenue growth versus 66% without AI capabilities. This performance gap demonstrates AI's impact on commercial outcomes. Retailers evaluating technology platforms should prioritize solutions with embedded intelligence that enhances both customer experiences and internal productivity. Source: Envive.ai

21. CRM users are 86% more likely to exceed sales goals

Freshworks research indicates that CRM users are 86% more likely to exceed their sales targets. This performance differential reflects CRM's ability to systematize customer engagement and ensure no opportunity falls through the cracks. Integrated NetSuite CRM capabilities provide retailers with unified customer views enabling sales effectiveness. Source: Endear HQ

22. 56% of shoppers become repeat buyers following personalized experiences

Twilio Segment data shows that 56% become repeat buyers after experiencing personalization. This conversion rate from one-time to repeat customer demonstrates personalization's direct retention impact. Retailers with unified data platforms can deliver the individualized experiences that trigger this loyalty response across web, email, and in-store interactions. Source: Envive.ai

Omnichannel and Mobile Commerce

23. Omnichannel customers are worth 3.5 times more

Research shows that omnichannel customers deliver 3.5 times more value than single-channel shoppers. This value multiplier makes omnichannel capability essential for maximizing customer lifetime value. Retailers need platforms that unify inventory, customer data, and order management across channels—exactly what integrated ERP and e-commerce solutions deliver. Source: Endear HQ

24. Mobile commerce reached $4.5 trillion representing 70% of eCommerce

eMarketer research indicates mobile commerce reached $4.5 trillion in 2024, representing 70% of total e-commerce volume. This mobile dominance requires responsive, fast-loading storefronts optimized for smartphone experiences. BigCommerce development services focus on mobile-first design that captures this massive and growing commerce channel. Source: Envive.ai

25. Omnichannel shoppers have 250% higher purchase frequency

Aberdeen Group data reveals that omnichannel shoppers demonstrate 250% higher purchase frequency compared to single-channel customers. This frequency multiplier compounds the value of omnichannel customers over time. Retailers with unified inventory visibility and consistent experiences across web, mobile, and store channels capture this increased transaction volume. Source: Envive.ai

26. Companies with strong omnichannel see 9.5% YoY revenue increase

Digital Commerce 360 research shows that powerful omnichannel engagement drives 9.5% annual growth compared to significantly lower growth for disconnected approaches. This consistent growth advantage compounds over time, creating widening gaps between omnichannel leaders and laggards. Platform selection directly impacts an organization's ability to capture this growth. Source: Uniform Market

27. Average retail consumers want six touchpoints per purchase

Research indicates that average retail consumers expect nearly six touchpoints during their purchasing journey. This multi-touch reality requires consistent data and experience across every interaction point. Organizations with disconnected systems create friction that drives customers to competitors offering smoother cross-channel journeys. Source: Uniform Market

Loyalty Program Performance

28. 83% of companies report positive loyalty program ROI with 5.2X returns

Antavo's Global Customer Loyalty Report reveals that 83% report positive ROI with average returns of 5.2X on loyalty program investments. This strong return profile makes loyalty programs essential for retention-focused retailers. However, program success requires integrated systems that track customer behavior, manage points, and deliver personalized rewards efficiently. Source: Antavo

29. Loyalty program members generate 12-18% more revenue

Accenture research shows that loyalty members generate 12-18% more revenue than non-members. This revenue premium justifies loyalty program investment and ongoing optimization. Retailers with integrated e-commerce and ERP systems can track member behavior, personalize rewards, and measure program performance with precision. Source: Envive.ai

30. 80% of American consumers belong to at least one loyalty program

Forbes research indicates that 80% of American consumers participate in at least one loyalty program. This high participation rate means loyalty programs have become expected rather than exceptional. Retailers without competitive loyalty offerings risk losing customers to competitors whose programs provide tangible value and recognition. Source: Sprinklr

31. 75% of consumers will switch for a better loyalty program

KPMG research reveals that 75% will switch brands if they find a more attractive loyalty program. This switching willingness makes loyalty program competitiveness a retention imperative. Organizations must continuously evaluate and enhance their programs to prevent competitor offerings from pulling customers away. Source: Sprinklr

Customer Experience Essentials

32. 95% of consumers say customer service is essential for loyalty

Microsoft's Global State of Customer Service report shows that 95% consider service essential for brand loyalty. This near-universal expectation means service failures create retention crises. Integrated systems that give service teams complete customer visibility enable the responsive, informed service that builds lasting loyalty. Source: Envive.ai

33. Customers are 2.4 times more likely to stay with quick problem resolution

Forrester research indicates customers are 2.4 times more likely to remain loyal when brands resolve problems quickly. This loyalty multiplier makes rapid resolution capability essential. Organizations with unified customer data and streamlined processes can identify and resolve issues faster than competitors relying on disconnected systems. Source: Envive.ai

34. 85% of churn is preventable through better customer service

SuperOffice research reveals that 85% of customer churn could be prevented with improved customer service. This preventability rate means most defections result from fixable service failures rather than inevitable market dynamics. Retailers with integrated systems that enable proactive service and rapid issue resolution retain customers that competitors lose. Source: Envive.ai

Partnering for Retention Success

Implementing the technology infrastructure necessary for competitive retention requires expertise beyond basic software installation. Retailers need partners who understand both the technology platforms and the specific challenges of retail customer engagement.

For organizations seeking integrated ERP and e-commerce solutions, Anchor Group's NetSuite services provide the implementation expertise and industry knowledge necessary to maximize retention-focused capabilities. Our team specializes in retail-specific configurations that enable personalization, omnichannel consistency, and the operational efficiency that supports exceptional customer experiences.

Not sure where to start? Our free 30-minute fix consultation helps retailers identify quick wins and strategic priorities for retention improvement.

Frequently Asked Questions

Why is customer retention more important than acquisition for retailers?

Retention delivers superior economics because acquiring new customers costs 5-25 times more than keeping existing ones. Retained customers spend 67% more over time and have 60-70% purchase probability versus 5-20% for new prospects. With retailers losing $29 per new customer acquired, retention investments generate returns that acquisition spending cannot match, particularly for thin-margin operations.

How can NetSuite ERP directly improve my retail customer retention rate?

NetSuite ERP centralizes customer data across all touchpoints, enabling the personalization that 71% of customers expect. Integrated inventory management prevents stockouts that frustrate buyers, while automated workflows ensure consistent service delivery. The unified platform gives teams complete customer visibility for proactive engagement that prevents churn affecting retail operations without proper systems.

What role does e-commerce platform choice play in customer loyalty?

Platform choice directly impacts the omnichannel capabilities that drive 89% retention versus 33% for disconnected approaches. Integrated platforms like SuiteCommerce and BigCommerce enable consistent experiences across web, mobile, and store. Omnichannel customers are worth 3.5 times more and purchase 250% more frequently than single-channel shoppers, making platform selection critical.

What are practical strategies for personalizing the retail customer experience?

Effective personalization requires unified customer data that 92% of businesses now leverage through AI. Start with purchase history for product recommendations, behavioral data for communication timing, and preference tracking for channel optimization. Loyalty programs provide additional data while rewarding engagement—members generate 12-18% more revenue than non-participants, justifying the investment.

Does Anchor Group work with both online and brick-and-mortar retail businesses?

Anchor Group specializes in unified commerce solutions serving both online and physical retail operations. Our NetSuite and SuiteCommerce implementations create omnichannel experiences that 89% of customers prefer. We help retailers achieve the integration that makes omnichannel customers worth 3.5 times more through connected inventory, customer data, and order management systems.