Customer Retention Benchmark
Industry benchmark for customer retention rates.
Industry benchmark for customer retention rates.
Calculate it: LTV & LTV:CAC Calculator
Why It Matters
Acquiring a new customer costs 5-7x more than retaining existing ones. Retention rate directly impacts LTV and overall profitability.
Benchmarks
A good Customer Retention Benchmark is 30-40%. Top performers achieve 50%+.
Good Performance
30-40%
Top Performers
50%+
Practical Example
Scenario
A supplements brand measures 12-month retention rate.
Calculation
1,000 customers acquired in Q1 2023. 340 repurchased within 12 months. Retention: 34%Result
At 34% retention, beating 30% benchmark but opportunity to reach 45%+ through subscription and loyalty programs
Pro Tips
- 1Measure retention over appropriate timeframes for your category—90 days for consumables, 12+ months for durables
- 2Retention varies dramatically by acquisition source—organic/email often 2x paid social
- 3Focus on second purchase: customers who buy twice have 9x higher retention long-term
Common Mistakes to Avoid
Frequently asked questions
Put it to work
Related Terms
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7.7x blended return at scale — seven figures attributed, across five straight quarters · Modern Prairie · Apr 2025–Jun 2026 Read the Modern Prairie case study
