Almost half (45%) of retailers now experience customer churn rates upwards of 51%

With the cost of living squeezing consumers’ disposable incomes and ebbing away at customers’ loyalty propensities, retailers are facing higher levels of customer churn, the latest research from insights-led customer engagement platform, MoEngage, suggests.

Original research of over 1,000 European brands, including 500 UK businesses, by MoEngage in its latest 2023 Customer Retention Benchmark report showed that over a third (36%) of retailers’ average customer retention rates are currently up to 30%, with a further two fifths (22%) saying their average retention rate falls between 31-40%.  Meanwhile, just 2% of retailers say their retention rate sits at over 80%, suggesting that brands are missing out on sales opportunities from repeat purchases and loyal shoppers, and focusing on acquisition rather than retention in their current customer engagement strategies.  

As cost-of-living pressures put more strain on consumers’ disposable spending, three-quarters (74%) of UK shoppers have stopped buying from their favourite brands due to budgets becoming squeezed, according to Retail Insight’s research. 

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