Although the results were close, the industry in the United States where customers were most likely to leave their current provider due to poor customer service appears to be cable television, with a 25 percent churn rate in 2020.

Churn rate

Churn rate, sometimes also called attrition rate, is the percentage of customers that stop utilizing a service within a time given period. It is often used to measure businesses which have a contractual customer base, especially subscriber-based service models.

Customer retention rates are highest in the media and professional services industries, with a 2018 survey of businesses worldwide finding a customer retention rate of 84 percent in both of these industries. The industry with the lowest customer retention rate was hospitality, travel and restaurants with 55 percent.

In the first quarter of 2024, T-Mobile US had a churn rate of 0.89 percent for postpaid subscribers, a two percentage point increase compared to the previous quarter. T-Mobile US has lowered its postpaid churn rate from more than two percent to below one percent over the last ten years.

T-Mobile reported a prepaid customer churn rate of 2.75 percent in the United States in the first quarter of 2024. This was a decrease in comparison to the last two quarters of 2023. The company's prepaid churn rate has fallen over recent years, having peaked at over five percent in the final quarter of 2014.

In the first quarter of Vodafone's financial year 2024/2025, the firm's total churn rate in Germany was 16.2, the lowest of its European markets. African countries had the highest churn rate at 66.6 percent, while the United Kingdom reported the highest churn rate within Europe, with 29.8 percent. This figure was driven by exceptionally high prepaid churn in the UK.

This graph displays the average monthly churn rate for top wireless carriers in the United States from the first quarter of 2013 to the third quarter of 2018. The average monthly churn rate of Verizon Wireless was at 1.22 percent in the third quarter of 2018.

Churn rates of wireless carriers - additional information

The average monthly churn rate of wireless carriers refers to the average percentage of subscribers that cease to use the company’s services per month. The churn rate is used as an indicator of the health and loyalty of a company’s subscriber base and the lower the churn rate, the better the outlook is for the company. Verizon Wireless was the company with the lowest churn rate in the U.S. from 2013 to 2016. This success can be seen in the company’s revenue, with wireless services earning Verizon almost 90 billion U.S. dollars in 2016 alone.

AT&T’s churn rate in the fourth quarter of 2016 stood at 1.71 percent, the third lowest of all the wireless carriers in the U.S. The Texas-based company’s churn rate has remained relatively stable in recent years, although it has risen slightly since it was at its lowest of 1.31 percent in 2010 and 2015. The number of wireless subscribers of AT&T has nevertheless continued to grow, with the 146.8 million customers in 2016 marking the company’s highest ever total to date. Of these wireless subscribers 77.8 million held a postpaid subscription in comparison to just 13.5 million who were prepaid subscribers.

At 2.8 percent, Sprint Nextel was the wireless carrier with the highest churn rate in the U.S. in 2016. This high churn rate can be attributed to Sprint Nextel’s prepaid customer segment because whilst the postpaid churn rate has stayed mostly below 2.5 since the start of 2008, the prepaid churn rate stood at 5.62 percent in the first quarter of 2016. Although this churn rate has come down more recently after its peak at 9.93 percent at the start of 2008, it still remains higher than the company average and the respective churn rates of its competitors.

In Singapore, 53 percent of subscription commerce merchants expected an increase in customer churn as of 2023. UK-based subscription commmerce merchants followed, with 51 percent expecting an increase in customer churn that year.

Customer Reference Management Software Market size was valued at USD 1.66 Billion in 2023 and is projected to reach USD 3.73 Billion by 2030, growing at a CAGR of 12.3% during the forecast period 2024-2030.

Global Customer Reference Management Software Market Drivers

The market drivers for the Customer Reference Management Software Market can be influenced by various factors. These may include:

A Growing Emphasis on Customer Success: Businesses are discovering the value of customer advocacy and success more and more. In addition to being more likely to have their contracts renewed, satisfied clients also serve as brand ambassadors, bringing in new business through recommendations and referrals.

Growth of Business Models Based on Subscriptions: The transition to subscription-based business models has made it imperative to retain customers in order to guarantee consistent income streams. CRM software lowers churn rates by managing and fostering customer connections throughout their lives.

Demand for Personalized Marketing: Customer testimonials and insights are necessary for implementing personalized marketing tactics. Businesses may efficiently gather, arrange, and use client references in their marketing campaigns with the help of CRM software.

Growing Significance of Social Proof: In the era of digital technology, social proof is a major factor in consumer decisions. Referrals from satisfied customers, reviews, and testimonials are strong types of social proof that sway prospective purchasers. CRM software makes managing and using these references easier.

Extension of Customer Advocacy Initiatives: To capitalize on the influence of contented consumers, numerous businesses are funding official customer advocacy initiatives. CRM software facilitates the process of locating possible advocates, monitoring their involvement, and compensating them for their advocacy work.

Integration with Sales and Marketing Platforms: By integrating CRM software with currently available sales and marketing platforms, customer engagement may be conducted more effectively and efficiently. The demand for CRM solutions is increased by this integration, which expedites procedures like lead creation, nurturing, and conversion.

attention on Efficiency and ROI: Businesses are placing an increasing amount of attention on streamlining customer engagement procedures in order to optimize their returns on investment. By measuring the effect of customer referrals on marketing and sales initiatives, CRM software helps businesses increase ROI and streamline operations.

Technological Developments: CRM solutions are becoming more potent and adaptable as a result of developments in artificial intelligence, automation, and analytics. Companies are using CRM software more and more to provide individualized experiences and get insights from customer data.

Globalization and Competitive Pressures: Businesses must set themselves apart by providing outstanding client experiences in a highly competitive global economy. CRM software improves competitiveness and market positioning by assisting in the development and maintenance of solid customer connections.

In 2023, Frontier Communications had a customer monthly churn rate of 1.52 percent, having decreased slightly in relation to the previous year, and matching the 2021 rate - the lowest value in the period under consideration. Between 2015 and 2020, Frontier Communications' churn rate has been around 1.7 to 2.2 percent.

In 2022, the churn rate among health and wellness retail subscribers was the highest, reaching nearly ten percent. In comparison, subscriptions to beauty and personal care products had the lowest consumer churn rate at 8 percent.

According to Cognitive Market Research, the global Loyalty Management market size will be USD 25.4 billion in 2024 and will expand at a compound annual growth rate (CAGR) of 17.3% from 2024 to 2031. Market Dynamics of Loyalty Management Market

Key Drivers for Loyalty Management Market

Growing Application of Artificial Intelligence for Innovative Solutions-One of the main reasons the Loyalty Management market is increasing the application of artificial intelligence (AI) for innovative solutions. AI-powered tools enable companies to analyze vast amounts of customer data, predict behaviors, and personalize rewards programs more effectively. These solutions enhance customer engagement by delivering tailored experiences and offers, thereby increasing satisfaction and retention rates. AI also automates and optimizes various loyalty program processes, reducing operational costs and improving efficiency. Additionally, AI-driven insights help in detecting and preventing fraudulent activities, ensuring the integrity of loyalty programs.
The increasing customer preference for personalized solutions to drive the Loyalty Management market's expansion in the years ahead.

Key Restraints for Loyalty Management Market

Stringent Government regulations pose a serious threat to the Loyalty Management industry.
The market also faces significant difficulties related to data security and privacy.

Introduction of the Loyalty Management Market

The Loyalty Management Market encompasses systems and strategies designed to retain customers by rewarding their repeat business, fostering brand loyalty, and encouraging customer engagement. This market is segmented by type, deployment, organization size, end-user industry, and region. Types include customer loyalty, employee retention, and channel loyalty management. Deployment can be cloud-based or on-premises, catering to different organizational needs. Organizations of varying sizes, from SMEs to large enterprises, utilize these solutions. End-user industries span retail, hospitality, BFSI, healthcare, and IT & telecom, each with unique loyalty program requirements. Geographically, the market covers North America, Europe, Asia Pacific, Latin America, and MEA, each exhibiting distinct growth drivers and adoption trends. As businesses increasingly recognize the value of customer retention over acquisition, the loyalty management market is poised for significant growth, driven by advancements in technology and the rising importance of personalized customer experiences.

In the third quarter of 2024, the total average churn rate was 0.6 percent per month. The churn rate refers to the share of customers who discontinued their subscriptions in relation to the average number of customers in the period of consideration. This graph shows the monthly churn rate of Deutsche Telekom in the mobile communications segment from the first quarter of 2009 to the third quarter of 2024.

Global Retail Bank Loyalty Program market size 2025 was XX Million. Retail Bank Loyalty Program Industry compound annual growth rate (CAGR) will be XX% from 2025 till 2033.

By the end of the first quarter of Vodafone's financial year 2024/25, the contract churn rate in the United Kingdom (UK) stood at 13.4 percent. This is an increase compared to the previous quarter, and yet a decrease when compared to the same quarter in the previous year. Overall, the contract churn rate at Vodafone UK has been decreasing steadily since 2014.

The Voucher Management System (VMS) market is experiencing robust growth, driven by the increasing adoption of digital vouchers across diverse sectors. The market size in 2025 is estimated at $2.5 billion, exhibiting a Compound Annual Growth Rate (CAGR) of 15% from 2025 to 2033. This significant expansion is fueled by several key factors. Firstly, the rising preference for digital channels in retail, hospitality, and entertainment is boosting demand for efficient VMS solutions. Secondly, businesses are increasingly recognizing the strategic value of targeted voucher campaigns for customer acquisition and retention, leading to increased investment in sophisticated VMS platforms. Furthermore, the integration of VMS with loyalty programs and CRM systems enhances customer engagement and provides valuable data-driven insights for improved marketing strategies. The growth is also propelled by advancements in technology, such as cloud-based solutions and improved mobile accessibility, making VMS more affordable and convenient for businesses of all sizes. The market segmentation reveals a strong demand across various applications, with telecommunications, gaming, and retail sectors as major contributors. The e-voucher segment is experiencing faster growth than the paper voucher segment due to its scalability and cost-effectiveness. However, despite the positive outlook, challenges remain. Data security concerns related to sensitive customer information and the complexity of integrating VMS with existing business systems can hinder adoption. Furthermore, maintaining accurate voucher inventory and preventing fraud remain key operational challenges for businesses. Nevertheless, the overall market trajectory remains optimistic, with continued innovation in VMS technology and expanding application across various industries poised to drive substantial growth throughout the forecast period. The competition among numerous vendors is fostering innovation and driving down prices, making VMS accessible to a wider range of businesses. Geographic expansion, particularly in emerging markets with growing digital adoption rates, also presents significant opportunities for market expansion. The projected market size in 2033 is estimated to reach $7.2 billion, reflecting the substantial growth potential of the VMS market.

Not all app categories can boast the same degree of user retention on day 30. While news apps were reported in the third quarter of 2024 to have a retention rate of almost 10 percent, social media apps presented less than two percent retention rate after 30 days from install. Entertainment apps presented a three percent installation rate, while a shopping apps had a retention rate of around four percent one month after installation. Before retention: user acquisition Gaining new users is fundamental for the healthy growth of a mobile application, and app developers have an array of tools that can be used to expand their audience. As of the second quarter of 2022, CPI, or cost per install, was the most used pricing model for user acquisition campaigns according to app developers worldwide. The cost of acquiring one new install in North America was of 5.28 U.S. dollars, but driving in-app purchases in the region was more pricey, with a cost of roughly 75 U.S. dollars per user. The future of in-app advertising In recent years, subscriptions and in-app purchases have become more popular app monetization practices, with users finally willing to pay for app premium functionalities and services. In 2020, video ads were reportedly the most expensive type of ads to drive conversions on both iOS and Android apps, while banner ads had a cost per action (CPA) of 36.77 U.S. dollars on iOS, and 10.28 U.S. dollars on Android.

According to a May 2024 study on the client retention rates of leading public relations agencies, Public Communications Inc. had the highest client retention rate at 97 percent, closely followed by JCPR, Inc. at 96 percent.

This statistic shows the defection rate of price-sensitive property and casualty customers as opposed to normal customers worldwide in 2016, by country. In the United States, price-sensitive P&C customers were 2.6 times more likely to churn compared with other auto insurance customers.

The churn rate on self-storage in the United Kingdom has gradually declined since 2015 when it was at its highest value of 131. In 2023, the churn rate stood at 98 percent, higher than the year before when it was 81 percent. This trend can be attributed to the increased occupancy rate on lettable self-storage in the same period. Though the occupancy rate in the country exceeded 75 percent, there is still more room for expansion as the extent of self-storage usage indicates only a very small percentage of potential customers use a self-storage service.