# Customer Retention Statistics 2026: Churn, Net Revenue Retention and Why Customers Leave

Updated 2026-11-04. Checked by StatisticsGlobal editorial team. Recurly, ChartMogul, Antenna, Qualtrics XM Institute and PwC data, 6 documents from 5 publishers, data for 2022 to 2026.
Canonical: https://statisticsglobal.org/customer-retention-statistics/

Subscription businesses on Recurly's network had an overall churn rate of 3.60% in July 2026, according to Recurly. Median churn ran from 3.22% in SaaS to 4.99% in education. About 65% of churn was voluntary and the rest came from failed payments. In SaaS, top-quartile businesses with ARPA over $500 a month kept 109.3% of revenue in 2022, against 65.1% for those under $10, according to ChartMogul. Bad experiences drive customers away: 52% of US consumers stopped buying from a brand after one in 2025, according to PwC.

## Key statistics

- Subscription businesses on Recurly's network had an overall churn rate of 3.60% across all industries in July 2026, according to Recurly.
- Voluntary cancellations made up about 65% of subscription churn on Recurly's network in July 2026, calculated by StatisticsGlobal from Recurly data.
- Top-quartile SaaS businesses with ARPA over $500 a month had net revenue retention of 109.3% in 2022, according to ChartMogul.
- 52% of US consumers stopped using or buying from a brand after a bad experience in 2025, according to PwC.
- Bad customer experiences put $2.94 trillion of global consumer sales at risk in 2026, 4.8% of consumption, according to Qualtrics XM Institute.

## Average customer churn and retention rate by industry

Recurly publishes median churn rates for the subscription businesses that bill through its platform. They are the most recent cross-industry benchmark we found, updated with July 2026 data.

SaaS and business services churn least. Education churns most, at 4.99%, or 1.55 times the SaaS rate. Retention is the other side of the same number: a 3.22% churn rate means SaaS businesses kept 96.78% of subscribers over the period Recurly measures.

Most churn is a choice. Voluntary cancellations made up about 65% of the total in July 2026. The rest was involuntary churn, where a card fails and the subscription lapses. Digital media has the biggest payment problem: failed payments caused 38.4% of its churn, the highest share of the six industries.

Price matters more than industry for failed payments. Subscribers paying $10 to $25 a month had the highest median churn, 4.29%, and involuntary churn of 1.30%. Above $250 a month, involuntary churn fell to 0.18%. Subscribers paying $100 to $250 churned 33% less than the cheapest tier.

Recurly's page is not fully consistent. The headline overall rate is 3.60%, while its page description says 3.27%. Body text gives SaaS a 3.04% median and the over-$250 tier 3.54%, while the data tables give 3.22% and 3.07%. We use the table figures throughout.

- Subscription businesses on Recurly's network had an overall churn rate of 3.60% across all industries in July 2026, according to Recurly. Source: Recurly, Churn Rate Benchmarks (July 2026 data, accessed 4 November 2026) https://www.recurly.com/research/churn-rate-benchmarks
- Voluntary churn averaged 2.34% across all industries on Recurly's subscription network in July 2026, according to Recurly. Source: Recurly, Churn Rate Benchmarks (July 2026 data, accessed 4 November 2026) https://www.recurly.com/research/churn-rate-benchmarks
- Involuntary churn from failed payments averaged 1.25% across all industries on Recurly's network in July 2026, according to Recurly. Source: Recurly, Churn Rate Benchmarks (July 2026 data, accessed 4 November 2026) https://www.recurly.com/research/churn-rate-benchmarks
- Voluntary cancellations made up about 65% of subscription churn on Recurly's network in July 2026, calculated by StatisticsGlobal from Recurly data. Source: Recurly, Churn Rate Benchmarks (July 2026 data, accessed 4 November 2026) https://www.recurly.com/research/churn-rate-benchmarks
- SaaS businesses on Recurly's network had a median churn rate of 3.22% in July 2026, according to Recurly. Source: Recurly, Churn Rate Benchmarks (July 2026 data, accessed 4 November 2026) https://www.recurly.com/research/churn-rate-benchmarks
- Business and professional services subscriptions on Recurly's network had a median churn rate of 3.44% in July 2026, according to Recurly. Source: Recurly, Churn Rate Benchmarks (July 2026 data, accessed 4 November 2026) https://www.recurly.com/research/churn-rate-benchmarks
- Travel, hospitality and entertainment subscriptions on Recurly's network had a median churn rate of 3.91% in July 2026, according to Recurly. Source: Recurly, Churn Rate Benchmarks (July 2026 data, accessed 4 November 2026) https://www.recurly.com/research/churn-rate-benchmarks
- Digital media and entertainment subscriptions on Recurly's network had a median churn rate of 4.14% in July 2026, according to Recurly. Source: Recurly, Churn Rate Benchmarks (July 2026 data, accessed 4 November 2026) https://www.recurly.com/research/churn-rate-benchmarks
- Ecommerce subscriptions on Recurly's network had a median churn rate of 4.25% in July 2026, according to Recurly. Source: Recurly, Churn Rate Benchmarks (July 2026 data, accessed 4 November 2026) https://www.recurly.com/research/churn-rate-benchmarks
- Education subscriptions on Recurly's network had a median churn rate of 4.99% in July 2026, according to Recurly. Source: Recurly, Churn Rate Benchmarks (July 2026 data, accessed 4 November 2026) https://www.recurly.com/research/churn-rate-benchmarks
- Education subscriptions churned 1.55 times as fast as SaaS on Recurly's network in July 2026, calculated by StatisticsGlobal from Recurly data. Source: Recurly, Churn Rate Benchmarks (July 2026 data, accessed 4 November 2026) https://www.recurly.com/research/churn-rate-benchmarks
- Failed payments caused 38.4% of digital media churn on Recurly's network in July 2026, the highest share of six industries, calculated by StatisticsGlobal from Recurly data. Source: Recurly, Churn Rate Benchmarks (July 2026 data, accessed 4 November 2026) https://www.recurly.com/research/churn-rate-benchmarks
- SaaS businesses on Recurly's network kept 96.78% of subscribers at the median in July 2026, calculated by StatisticsGlobal from Recurly data. Source: Recurly, Churn Rate Benchmarks (July 2026 data, accessed 4 November 2026) https://www.recurly.com/research/churn-rate-benchmarks
- Subscribers paying $10 to $25 a month had the highest median churn, 4.29%, on Recurly's network in July 2026, according to Recurly. Source: Recurly, Churn Rate Benchmarks (July 2026 data, accessed 4 November 2026) https://www.recurly.com/research/churn-rate-benchmarks
- Involuntary churn was 0.18% for subscribers paying over $250 a month on Recurly's network in July 2026, according to Recurly. Source: Recurly, Churn Rate Benchmarks (July 2026 data, accessed 4 November 2026) https://www.recurly.com/research/churn-rate-benchmarks
- Subscribers paying $100 to $250 a month churned 33% less than those paying $10 to $25 on Recurly's network in July 2026, calculated by StatisticsGlobal from Recurly data. Source: Recurly, Churn Rate Benchmarks (July 2026 data, accessed 4 November 2026) https://www.recurly.com/research/churn-rate-benchmarks

Table: Median subscription churn by industry on the Recurly network, July 2026, with implied retention

| Industry | Total churn | Voluntary | Involuntary | Share from failed payments | Implied retention |
|---|---|---|---|---|---|
| SaaS | 3.22% | 2.16% | 1.06% | 32.9% | 96.78% |
| Business and professional services | 3.44% | 2.27% | 1.18% | 34.3% | 96.56% |
| Travel, hospitality and entertainment | 3.91% | 2.63% | 1.28% | 32.7% | 96.09% |
| Digital media and entertainment | 4.14% | 2.55% | 1.59% | 38.4% | 95.86% |
| Ecommerce | 4.25% | 2.87% | 1.38% | 32.5% | 95.75% |
| Education | 4.99% | 3.30% | 1.69% | 33.9% | 95.01% |

Source: Recurly, Churn Rate Benchmarks (July 2026 data). Share from failed payments and implied retention (100% minus total churn) calculated by StatisticsGlobal.

## SaaS retention and net revenue retention benchmarks

ChartMogul's SaaS Retention Report covers more than 2,100 SaaS businesses and three measures: net revenue retention (NRR), gross revenue retention (GRR) and customer, or logo, retention. Its latest edition uses 2022 data.

Who you sell to sets the ceiling. Top-quartile SaaS businesses with ARPA over $500 a month had NRR of 109.3%, meaning expansion more than covered churn. Under $10 a month, top-quartile NRR was 65.1%, a gap of 44.2 points. Higher-priced businesses were 15.2 times as likely to pass 100% NRR.

Customer retention follows the same pattern but the gap is smaller, 22.6 points, because NRR also counts upsells. Scale helps too. Top-quartile customer retention rose from 80.4% at $3m to $8m ARR to 84.2% at $15m to $30m. Gross revenue retention rose from 81.2% to 83.8%.

The first year is where customers are lost. Top-quartile businesses kept 90% of new customers through month 3 and 70% through month 12. So 22% of customers still active at month 3 were gone by month 12, even among the best performers.

Retention links to growth. Businesses with NRR above 100% grew 43.6% a year on average, 3.3 times the 13.1% of those below 60%. For a newer SaaS churn figure, Recurly put top-quartile SaaS churn at 1.78% or below in July 2026.

- Top-quartile SaaS businesses with ARPA over $500 a month had net revenue retention of 109.3% in 2022, according to ChartMogul. Source: ChartMogul, SaaS Retention Report (1 November 2023, accessed 4 November 2026) https://chartmogul.com/saas-retention-report/
- Top-quartile SaaS businesses with ARPA under $10 a month had net revenue retention of 65.1% in 2022, according to ChartMogul. Source: ChartMogul, SaaS Retention Report (1 November 2023, accessed 4 November 2026) https://chartmogul.com/saas-retention-report/
- Top-quartile net revenue retention was 44.2 points higher for SaaS with ARPA over $500 than under $10 in 2022, calculated by StatisticsGlobal from ChartMogul data. Source: ChartMogul, SaaS Retention Report (1 November 2023, accessed 4 November 2026) https://chartmogul.com/saas-retention-report/
- 41.1% of SaaS businesses with ARPA over $500 a month had net revenue retention above 100% in 2022, according to ChartMogul. Source: ChartMogul, SaaS Retention Report (1 November 2023, accessed 4 November 2026) https://chartmogul.com/saas-retention-report/
- Only 2.7% of SaaS businesses with ARPA under $10 a month had net revenue retention above 100% in 2022, according to ChartMogul. Source: ChartMogul, SaaS Retention Report (1 November 2023, accessed 4 November 2026) https://chartmogul.com/saas-retention-report/
- SaaS businesses with ARPA over $500 were 15.2 times as likely to exceed 100% net revenue retention as those under $10 in 2022, calculated by StatisticsGlobal from ChartMogul data. Source: ChartMogul, SaaS Retention Report (1 November 2023, accessed 4 November 2026) https://chartmogul.com/saas-retention-report/
- Top-quartile SaaS businesses with $1m to $3m ARR had net revenue retention of 94% in 2022, according to ChartMogul. Source: ChartMogul, SaaS Retention Report (1 November 2023, accessed 4 November 2026) https://chartmogul.com/saas-retention-report/
- Top-quartile SaaS businesses with $3m to $15m ARR had net revenue retention of 99% in 2022, according to ChartMogul. Source: ChartMogul, SaaS Retention Report (1 November 2023, accessed 4 November 2026) https://chartmogul.com/saas-retention-report/
- Top-quartile SaaS businesses with $3m to $8m ARR had gross revenue retention of 81.2% in 2022, according to ChartMogul. Source: ChartMogul, SaaS Retention Report (1 November 2023, accessed 4 November 2026) https://chartmogul.com/saas-retention-report/
- Top-quartile SaaS businesses with $15m to $30m ARR had gross revenue retention of 83.8% in 2022, according to ChartMogul. Source: ChartMogul, SaaS Retention Report (1 November 2023, accessed 4 November 2026) https://chartmogul.com/saas-retention-report/
- Top-quartile SaaS businesses with ARPA over $500 a month kept 85.7% of customers in 2022, according to ChartMogul. Source: ChartMogul, SaaS Retention Report (1 November 2023, accessed 4 November 2026) https://chartmogul.com/saas-retention-report/
- Top-quartile SaaS businesses with ARPA under $10 a month kept 63.1% of customers in 2022, according to ChartMogul. Source: ChartMogul, SaaS Retention Report (1 November 2023, accessed 4 November 2026) https://chartmogul.com/saas-retention-report/
- Top-quartile customer retention was 22.6 points higher for SaaS with ARPA over $500 than under $10 in 2022, calculated by StatisticsGlobal from ChartMogul data. Source: ChartMogul, SaaS Retention Report (1 November 2023, accessed 4 November 2026) https://chartmogul.com/saas-retention-report/
- Top-quartile SaaS businesses with $3m to $8m ARR kept 80.4% of customers in 2022, according to ChartMogul. Source: ChartMogul, SaaS Retention Report (1 November 2023, accessed 4 November 2026) https://chartmogul.com/saas-retention-report/
- Top-quartile SaaS businesses with $15m to $30m ARR kept 84.2% of customers in 2022, according to ChartMogul. Source: ChartMogul, SaaS Retention Report (1 November 2023, accessed 4 November 2026) https://chartmogul.com/saas-retention-report/
- Top-quartile SaaS businesses kept 90% of new customers through their first 3 months in 2021 to 2022 cohorts, according to ChartMogul. Source: ChartMogul, SaaS Retention Report (1 November 2023, accessed 4 November 2026) https://chartmogul.com/saas-retention-report/
- Top-quartile SaaS businesses kept 70% of new customers through their first 12 months in 2021 to 2022 cohorts, according to ChartMogul. Source: ChartMogul, SaaS Retention Report (1 November 2023, accessed 4 November 2026) https://chartmogul.com/saas-retention-report/
- Top-quartile SaaS businesses lost 22% of new customers still active at month 3 by month 12 in 2021 to 2022 cohorts, calculated by StatisticsGlobal from ChartMogul data. Source: ChartMogul, SaaS Retention Report (1 November 2023, accessed 4 November 2026) https://chartmogul.com/saas-retention-report/
- SaaS businesses with net revenue retention above 100% grew 43.6% a year on average in 2022, according to ChartMogul. Source: ChartMogul, SaaS Retention Report (1 November 2023, accessed 4 November 2026) https://chartmogul.com/saas-retention-report/
- SaaS businesses with net revenue retention below 60% grew 13.1% a year on average in 2022, according to ChartMogul. Source: ChartMogul, SaaS Retention Report (1 November 2023, accessed 4 November 2026) https://chartmogul.com/saas-retention-report/
- SaaS businesses above 100% net revenue retention grew 3.3 times as fast as those below 60% in 2022, calculated by StatisticsGlobal from ChartMogul data. Source: ChartMogul, SaaS Retention Report (1 November 2023, accessed 4 November 2026) https://chartmogul.com/saas-retention-report/
- Top-quartile SaaS businesses on Recurly's network had churn of 1.78% or below in July 2026, according to Recurly. Source: Recurly, Churn Rate Benchmarks (July 2026 data, accessed 4 November 2026) https://www.recurly.com/research/churn-rate-benchmarks

Table: Top-quartile SaaS retention by average revenue per account (ARPA), 2022

| Measure | ARPA under $10 a month | ARPA over $500 a month | Gap |
|---|---|---|---|
| Net revenue retention (top quartile) | 65.1% | 109.3% | +44.2 points |
| Customer retention (top quartile) | 63.1% | 85.7% | +22.6 points |
| Businesses with NRR above 100% | 2.7% | 41.1% | 15.2x |

Source: ChartMogul, SaaS Retention Report (2022 data, published November 2023). Gaps calculated by StatisticsGlobal.

## Subscription churn, pauses and win-backs

Two newer datasets show how consumer subscriptions behaved in 2025: Recurly across its merchants and Antenna for US premium streaming.

Churn is not always final. Nearly one in four new subscriptions in 2025 came from a former customer, according to Recurly. Pausing is replacing some cancellations: pause usage rose 337% at merchants that offer it, and 75% of subscribers who paused came back.

The main reason people cancel is simple. 52% of consumers cancelled at least one subscription in the past year because they did not use it.

US streaming shows a market that has stopped growing fast but churns more steadily. Antenna puts premium streaming churn at 4.6% in 2025, with churn flat or lower year on year in 7 of 11 months to August 2025. Subscriber growth slowed 5 points, from 12% to 7%. The fourth quarter brought 57% of net additions.

- Nearly one in four new subscriptions came from a former customer in 2025, according to Recurly. Source: Recurly, Subscriptions Are Entering a Smarter, More Mature Era (2026 State of Subscriptions press release via Business Wire) (14 January 2026, accessed 4 November 2026) https://www.businesswire.com/news/home/20260114492821/en
- Of subscribers who paused rather than cancelled, 75% eventually returned in 2025, according to Recurly. Source: Recurly, Subscriptions Are Entering a Smarter, More Mature Era (2026 State of Subscriptions press release via Business Wire) (14 January 2026, accessed 4 November 2026) https://www.businesswire.com/news/home/20260114492821/en
- Pause usage rose 337% at subscription merchants offering a pause option in 2025, according to Recurly. Source: Recurly, Subscriptions Are Entering a Smarter, More Mature Era (2026 State of Subscriptions press release via Business Wire) (14 January 2026, accessed 4 November 2026) https://www.businesswire.com/news/home/20260114492821/en
- Trial conversion to paid subscriptions stabilised at 34% in 2025, according to Recurly. Source: Recurly, Subscriptions Are Entering a Smarter, More Mature Era (2026 State of Subscriptions press release via Business Wire) (14 January 2026, accessed 4 November 2026) https://www.businesswire.com/news/home/20260114492821/en
- 52% of consumers cancelled at least one subscription in the past year because they did not use it, according to Recurly in its 2025 data. Source: Recurly, The 2026 State of Subscriptions (2026, accessed 4 November 2026) https://www.recurly.com/content/state-of-subscriptions-report
- Overall subscription growth slowed to 12.6% across the Recurly network in 2025, according to Recurly. Source: Recurly, The 2026 State of Subscriptions (2026, accessed 4 November 2026) https://www.recurly.com/content/state-of-subscriptions-report
- US premium streaming services had a weighted average churn rate of 4.6% in 2025, according to Antenna. Source: Antenna, Antenna Q1'26 State of Subscriptions Report: Premium SVOD 2025 Year in Review (February 2026, accessed 4 November 2026) https://www.antenna.live/insights/antenna-q126-state-of-subscriptions-report-premium-svod-2025-year-in-review
- US premium streaming subscribers grew 7% in 2025, down from 12% in 2024, according to Antenna. Source: Antenna, Antenna Q1'26 State of Subscriptions Report: Premium SVOD 2025 Year in Review (February 2026, accessed 4 November 2026) https://www.antenna.live/insights/antenna-q126-state-of-subscriptions-report-premium-svod-2025-year-in-review
- US premium streaming subscriber growth slowed by 5 percentage points in 2025, calculated by StatisticsGlobal from Antenna data. Source: Antenna, Antenna Q1'26 State of Subscriptions Report: Premium SVOD 2025 Year in Review (February 2026, accessed 4 November 2026) https://www.antenna.live/insights/antenna-q126-state-of-subscriptions-report-premium-svod-2025-year-in-review
- US premium streaming churn was flat or lower year on year in 7 of 11 months from September 2024 to August 2025, according to Antenna. Source: Antenna, Antenna Q1'26 State of Subscriptions Report: Premium SVOD 2025 Year in Review (February 2026, accessed 4 November 2026) https://www.antenna.live/insights/antenna-q126-state-of-subscriptions-report-premium-svod-2025-year-in-review
- The fourth quarter delivered 57% of US premium streaming net subscriber additions in 2025, according to Antenna. Source: Antenna, Antenna Q1'26 State of Subscriptions Report: Premium SVOD 2025 Year in Review (February 2026, accessed 4 November 2026) https://www.antenna.live/insights/antenna-q126-state-of-subscriptions-report-premium-svod-2025-year-in-review

Table: Subscription acquisition and retention indicators, 2025

| Indicator | Value | Source and scope |
|---|---|---|
| New subscriptions from former customers | Nearly 1 in 4 | Recurly, global merchants |
| Subscribers who pause and later return | 75% | Recurly, global merchants |
| Growth in pause usage | +337% | Recurly, merchants offering pause |
| Free trial conversion | 34% | Recurly, global merchants |
| Overall subscription growth | 12.6% | Recurly, global merchants |
| Consumers who cancelled a subscription for lack of use | 52% | Recurly, consumer research |
| Weighted average churn, premium streaming | 4.6% | Antenna, US |
| Premium streaming subscriber growth | 7% (12% in 2024) | Antenna, US |
| Share of net additions in Q4 | 57% | Antenna, US |

Sources: Recurly, 2026 State of Subscriptions (January 2026); Antenna, Q1'26 State of Subscriptions: Premium SVOD 2025 Year in Review.

## Why customers leave a brand

Surveys of consumers point to the same cause: a bad experience. They differ on how many people act on it.

PwC found that 52% of US consumers stopped using or buying from a brand after a bad experience, and 29% stopped because of poor customer experience. Qualtrics XM Institute, across 14 countries, found 34% reduced spending after a negative experience and 13% stopped entirely.

Customers are slightly more forgiving than a year earlier. 11% of experiences were bad in Qualtrics XM Institute's 2025 study, about the same as before. But consumers cut spending after 47% of them, down from about 55%. Fast food (62%) and online retail (58%) were the least forgiving industries.

People still want to talk to a person. 86% of US consumers said human interaction was moderately or very important to them, according to PwC. Price matters too, with 69% saying price comparison significantly influences them. For service benchmarks, see our [customer service statistics](https://statisticsglobal.org/customer-service-statistics/).

- 52% of US consumers stopped using or buying from a brand after a bad experience in 2025, according to PwC. Source: PwC, PwC's 2025 Customer Experience Survey (29 September 2025, accessed 4 November 2026) https://www.pwc.com/us/en/services/consulting/business-transformation/library/2025-customer-experience-survey.html
- 29% of US consumers stopped buying from a brand because of poor customer experience, online or in person, in 2025, according to PwC. Source: PwC, PwC's 2025 Customer Experience Survey (29 September 2025, accessed 4 November 2026) https://www.pwc.com/us/en/services/consulting/business-transformation/library/2025-customer-experience-survey.html
- 86% of US consumers said human interaction was moderately or very important in their brand experience in 2025, according to PwC. Source: PwC, PwC's 2025 Customer Experience Survey (29 September 2025, accessed 4 November 2026) https://www.pwc.com/us/en/services/consulting/business-transformation/library/2025-customer-experience-survey.html
- 69% of US consumers said comparing prices significantly influenced whether they engaged with a brand in 2025, according to PwC. Source: PwC, PwC's 2025 Customer Experience Survey (29 September 2025, accessed 4 November 2026) https://www.pwc.com/us/en/services/consulting/business-transformation/library/2025-customer-experience-survey.html
- 34% of consumers reduced spending with a company after a negative experience in 2025, according to Qualtrics XM Institute. Source: Qualtrics XM Institute, Businesses Risk $3 Trillion in Sales From Poor Customer Experiences as Consumers Cut Spending (12 November 2025, accessed 4 November 2026) https://www.qualtrics.com/news/businesses-risk-3-trillion-sales-poor-customer-experiences-consumers-cut-spending/
- 13% of consumers stopped spending with a company entirely after a negative experience in 2025, according to Qualtrics XM Institute. Source: Qualtrics XM Institute, Businesses Risk $3 Trillion in Sales From Poor Customer Experiences as Consumers Cut Spending (12 November 2025, accessed 4 November 2026) https://www.qualtrics.com/news/businesses-risk-3-trillion-sales-poor-customer-experiences-consumers-cut-spending/
- 11% of consumer experiences were bad across 14 countries in 2025, according to Qualtrics XM Institute. Source: Qualtrics XM Institute, $3 Trillion is at Risk due to Bad Customer Experiences in 2026 (12 November 2025, accessed 4 November 2026) https://www.qualtrics.com/articles/customer-experience/3-trillion-risk-due-bad-customer-experiences-2026
- Consumers cut spending after 47% of bad experiences in 2025, down 8 points on the previous year, according to Qualtrics XM Institute. Source: Qualtrics XM Institute, $3 Trillion is at Risk due to Bad Customer Experiences in 2026 (12 November 2025, accessed 4 November 2026) https://www.qualtrics.com/articles/customer-experience/3-trillion-risk-due-bad-customer-experiences-2026
- Consumers cut spending after about 55% of bad experiences in Qualtrics XM Institute's 2024 study, calculated by StatisticsGlobal from Qualtrics XM Institute data. Source: Qualtrics XM Institute, $3 Trillion is at Risk due to Bad Customer Experiences in 2026 (12 November 2025, accessed 4 November 2026) https://www.qualtrics.com/articles/customer-experience/3-trillion-risk-due-bad-customer-experiences-2026
- Consumers cut spending after 62% of bad fast food experiences in 2025, the highest of 18 industries, according to Qualtrics XM Institute. Source: Qualtrics XM Institute, $3 Trillion is at Risk due to Bad Customer Experiences in 2026 (12 November 2025, accessed 4 November 2026) https://www.qualtrics.com/articles/customer-experience/3-trillion-risk-due-bad-customer-experiences-2026
- Consumers cut spending after 58% of bad online retail experiences in 2025, according to Qualtrics XM Institute. Source: Qualtrics XM Institute, $3 Trillion is at Risk due to Bad Customer Experiences in 2026 (12 November 2025, accessed 4 November 2026) https://www.qualtrics.com/articles/customer-experience/3-trillion-risk-due-bad-customer-experiences-2026

Table: What consumers do after a bad experience, 2025

| Finding | Share | Source and scope |
|---|---|---|
| Stopped using or buying from a brand after a bad experience | 52% | PwC, 5,511 US consumers |
| Stopped because of poor customer experience, online or in person | 29% | PwC, 5,511 US consumers |
| Reduced spending after a negative experience | 34% | Qualtrics XM Institute, 14 countries |
| Stopped spending entirely after a negative experience | 13% | Qualtrics XM Institute, 14 countries |
| Bad experiences that led to a spending cut | 47% (about 55% a year earlier) | Qualtrics XM Institute, 14 countries |
| Say human interaction matters in their brand experience | 86% | PwC, US consumers |
| Say comparing prices significantly influences them | 69% | PwC, US consumers |

Sources: PwC, 2025 Customer Experience Survey; Qualtrics XM Institute, Q3 2025 consumer study. Earlier-year rate calculated by StatisticsGlobal.

## Cost of poor customer experience

Qualtrics XM Institute turns its survey into money: the consumer spending that bad experiences put at risk in 2026.

Qualtrics XM Institute estimates $2.94 trillion of 2026 consumer sales are at risk from bad experiences, 4.8% of consumption. Most of that is customers spending less. Customers walking away entirely make up 29.4%, or $865 billion.

The US has the most at stake in dollars, $973 billion, or 33.1% of the global total. As a share of spending, Mexico is highest at 8.0% and Japan lowest at 1.9%. The UK sits near the bottom at 3.8%.

The global figure fell 22.6% from the $3.8 trillion estimated a year earlier. Part of that is real: consumers cut spending after fewer bad experiences. Part is method: Qualtrics surveyed fewer countries and industries and says its sample is less representative than before.

- Bad customer experiences put $2.94 trillion of global consumer sales at risk in 2026, 4.8% of consumption, according to Qualtrics XM Institute. Source: Qualtrics XM Institute, $3 Trillion is at Risk due to Bad Customer Experiences in 2026 (12 November 2025, accessed 4 November 2026) https://www.qualtrics.com/articles/customer-experience/3-trillion-risk-due-bad-customer-experiences-2026
- Global sales at risk from bad experiences fell 22.6% to $2.94 trillion in the 2026 estimate, calculated by StatisticsGlobal from Qualtrics XM Institute data. Source: Qualtrics XM Institute, $3 Trillion is at Risk due to Bad Customer Experiences in 2026 (12 November 2025, accessed 4 November 2026) https://www.qualtrics.com/articles/customer-experience/3-trillion-risk-due-bad-customer-experiences-2026
- Customers stopping spending entirely made up 29.4% of global sales at risk from bad experiences in 2026, calculated by StatisticsGlobal from Qualtrics XM Institute data. Source: Qualtrics XM Institute, $3 Trillion is at Risk due to Bad Customer Experiences in 2026 (12 November 2025, accessed 4 November 2026) https://www.qualtrics.com/articles/customer-experience/3-trillion-risk-due-bad-customer-experiences-2026
- Bad customer experiences put $973 billion of US consumer sales at risk in 2026, according to Qualtrics XM Institute. Source: Qualtrics XM Institute, $3 Trillion is at Risk due to Bad Customer Experiences in 2026 (12 November 2025, accessed 4 November 2026) https://www.qualtrics.com/articles/customer-experience/3-trillion-risk-due-bad-customer-experiences-2026
- The US accounted for 33.1% of global sales at risk from bad customer experiences in 2026, calculated by StatisticsGlobal from Qualtrics XM Institute data. Source: Qualtrics XM Institute, $3 Trillion is at Risk due to Bad Customer Experiences in 2026 (12 November 2025, accessed 4 November 2026) https://www.qualtrics.com/articles/customer-experience/3-trillion-risk-due-bad-customer-experiences-2026
- Mexico had the highest share of sales at risk from bad experiences in 2026, 8.0% of consumption, according to Qualtrics XM Institute. Source: Qualtrics XM Institute, $3 Trillion is at Risk due to Bad Customer Experiences in 2026 (12 November 2025, accessed 4 November 2026) https://www.qualtrics.com/articles/customer-experience/3-trillion-risk-due-bad-customer-experiences-2026
- Japan had the lowest share of sales at risk from bad experiences in 2026, 1.9% of consumption, according to Qualtrics XM Institute. Source: Qualtrics XM Institute, $3 Trillion is at Risk due to Bad Customer Experiences in 2026 (12 November 2025, accessed 4 November 2026) https://www.qualtrics.com/articles/customer-experience/3-trillion-risk-due-bad-customer-experiences-2026
- Bad customer experiences put $78 billion of UK consumer sales at risk in 2026, 3.8% of consumption, according to Qualtrics XM Institute. Source: Qualtrics XM Institute, $3 Trillion is at Risk due to Bad Customer Experiences in 2026 (12 November 2025, accessed 4 November 2026) https://www.qualtrics.com/articles/customer-experience/3-trillion-risk-due-bad-customer-experiences-2026

Table: Sales at risk from bad customer experiences in 2026, by country (US$ billions)

| Country | Reduced spending | Stopped spending | Total at risk | Share of consumption |
|---|---|---|---|---|
| Global | 2,075 | 865 | 2,940 | 4.8% |
| Mexico | 82 | 22 | 104 | 8.0% |
| Brazil | 75 | 27 | 102 | 7.3% |
| UAE | 13 | 3 | 16 | 6.7% |
| France | 64 | 33 | 97 | 6.0% |
| Sweden | 10 | 4 | 14 | 5.6% |
| Germany | 69 | 42 | 111 | 4.9% |
| US | 690 | 283 | 973 | 4.9% |
| Australia | 31 | 12 | 43 | 4.8% |
| New Zealand | 5 | 2 | 7 | 4.6% |
| Canada | 35 | 16 | 51 | 4.3% |
| Netherlands | 14 | 6 | 21 | 4.3% |
| Singapore | 5 | 2 | 7 | 4.0% |
| UK | 54 | 24 | 78 | 3.8% |
| Japan | 28 | 16 | 44 | 1.9% |

Source: Qualtrics XM Institute, $3 Trillion is at Risk due to Bad Customer Experiences in 2026 (November 2025). Sorted by share of consumption by StatisticsGlobal.

## How these sources measure customer retention

Retention has no official statistic. Every figure here comes from a vendor, a research firm or a consultancy, and each one measures something different.

Recurly and ChartMogul sell subscription billing and analytics software. Their benchmarks come from their own customers, not a random sample of businesses. Recurly labels its figures median annual churn rates but does not define the measurement window, and its page says annual churn is not simply 12 times monthly churn. Compare Recurly figures with each other, not with monthly churn from other sources.

ChartMogul reports top-quartile values, not medians, so a typical business will sit below them. Its latest edition uses 2022 data and was published in November 2023. It separates customer retention (share of customers kept), gross revenue retention (revenue kept, excluding upsells) and net revenue retention (revenue kept, including upsells). These are often mixed up.

Antenna estimates US premium streaming churn from consumer transaction data. Qualtrics XM Institute surveyed 20,001 consumers in 14 countries in Q3 2025, then applied its rates to World Bank consumption data and scaled them to the world. PwC surveyed 5,511 US consumers and 406 executives between 21 May and 30 June 2025.

A widely repeated claim says a 5% rise in retention lifts profits by 25% to 95%. It is decades old and we could not find it at a primary source, so it is not used here. For programme and brand loyalty data, see our [customer loyalty statistics](https://statisticsglobal.org/customer-loyalty-statistics/).


## Frequently asked questions

### What is the average customer retention rate?

It depends on the business. Median subscription churn on Recurly's network was 3.60% in July 2026, implying about 96.4% retention over the period it measures. In SaaS, top-quartile businesses kept 80.4% to 84.2% of customers a year in 2022, according to ChartMogul.

### Which industry has the highest churn rate?

Education, at a median of 4.99% on Recurly's network in July 2026. Ecommerce (4.25%) and digital media (4.14%) follow. SaaS has the lowest, at 3.22%.

### What is a good net revenue retention rate for SaaS?

It depends on price. Top-quartile SaaS businesses with ARPA over $500 a month had NRR of 109.3% in 2022, according to ChartMogul. Under $10 a month the top quartile reached only 65.1%. ChartMogul puts best in class for mid-market and enterprise B2B at 115% to 125%.

### Is customer churn getting better or worse?

Steadier in streaming. US premium streaming churn held at 4.6% in 2025, flat or lower year on year in 7 of 11 months, according to Antenna. Consumers also cut spending after fewer bad experiences: 47% in 2025, down from about 55% the year before, according to Qualtrics XM Institute.

### Why do customers stop buying from a brand?

Bad experiences are the main trigger. 52% of US consumers stopped buying from a brand after a bad experience in 2025, according to PwC. For subscriptions, 52% of consumers cancelled at least one in the past year because they did not use it, according to Recurly.

### Which countries lose the most sales to bad customer experience?

The US, with $973 billion at risk in 2026, according to Qualtrics XM Institute. As a share of consumption, Mexico is highest at 8.0%, followed by Brazil at 7.3% and the UAE at 6.7%. Japan is lowest at 1.9%.

## Sources

1. Recurly, Churn Rate Benchmarks, July 2026 data, accessed 4 November 2026. https://www.recurly.com/research/churn-rate-benchmarks
2. ChartMogul, SaaS Retention Report, 1 November 2023, accessed 4 November 2026. https://chartmogul.com/saas-retention-report/
3. PwC, PwC's 2025 Customer Experience Survey, 29 September 2025, accessed 4 November 2026. https://www.pwc.com/us/en/services/consulting/business-transformation/library/2025-customer-experience-survey.html
4. Qualtrics XM Institute, $3 Trillion is at Risk due to Bad Customer Experiences in 2026, 12 November 2025, accessed 4 November 2026. https://www.qualtrics.com/articles/customer-experience/3-trillion-risk-due-bad-customer-experiences-2026
5. Recurly, Subscriptions Are Entering a Smarter, More Mature Era (2026 State of Subscriptions press release via Business Wire), 14 January 2026, accessed 4 November 2026. https://www.businesswire.com/news/home/20260114492821/en
6. Recurly, The 2026 State of Subscriptions, 2026, accessed 4 November 2026. https://www.recurly.com/content/state-of-subscriptions-report
7. Antenna, Antenna Q1'26 State of Subscriptions Report: Premium SVOD 2025 Year in Review, February 2026, accessed 4 November 2026. https://www.antenna.live/insights/antenna-q126-state-of-subscriptions-report-premium-svod-2025-year-in-review
8. Qualtrics XM Institute, Businesses Risk $3 Trillion in Sales From Poor Customer Experiences as Consumers Cut Spending, 12 November 2025, accessed 4 November 2026. https://www.qualtrics.com/news/businesses-risk-3-trillion-sales-poor-customer-experiences-consumers-cut-spending/