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Customer Retention Rate: What Normal Looks Like by Vertical

Ecommerce retains about 30% of its customers while banks keep 75% and media companies keep 84%. Those numbers get quoted side by side constantly, and comparing yourself to the wrong column is how stores talk themselves into panic or complacency.

By The Retentionist  ·  August 2, 2026  ·  7 min read  ·  AI-drafted from sourced data

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Photo: USDAgov (BY) via Openverse

Retention rate is the most quoted and least contextualized number in ecommerce. Somebody reads that the average company keeps 75% of its customers, checks their own dashboard, sees 26%, and concludes their store is dying. It is not. It is a store, and stores live in a different gravitational field than the industries those big retention numbers come from.

Here is the published data, sorted so the comparison is honest.

The cross-industry table, and where stores actually sit

Shopify’s staff-maintained roundup, updated September 11, 2024, collects average retention rates by industry. The service and contract businesses cluster at the top: media companies and professional services at 84%, automotive and transportation at 83%, insurance at 83%, IT services at 81%, construction and engineering at 80%, financial services and telecom at 78%, healthcare and software at 77%, banking at 75%, consumer services and manufacturing at 67%, hospitality at 55%.

Then, at the bottom of the same table: ecommerce, 30%. That figure comes from Decile’s 2023 Ecommerce Benchmarking Guide, measured across the brands on its platform. Omnisend’s guide cites a nearly identical online-retail average of 28.2%. Two independent datasets, same neighborhood: roughly three in ten customers come back.

Retention rate by industry Published averages collected by Shopify (updated Sep 2024). Ecommerce figure from Decile's 2023 benchmarking guide. Media companies 84% Professional services 84% Insurance 83% IT services 81% Financial services 78% Health care 77% Banking 75% Manufacturing 67% Hospitality 55% Ecommerce 30% Omnisend cites a companion online-retail figure of 28.2%. The gap to the contract industries is structural, not a grade.
Selected industries from Shopify's published roundup. The full list appears in the sortable table below.

Why the gap is structural

Look at what the top of the table sells: subscriptions, policies, contracts, relationships with switching costs. A bank customer who does nothing this year counts as retained. A store customer who does nothing this year counts as churned. Shopify’s own commentary on the table says as much, crediting banking’s 75% partly to “the hassle and costs of switching providers.”

Ecommerce has no such inertia subsidy. Every order is re-earned from scratch against one-click access to every competitor on earth. That is why the honest reading of a 30% store average is not “stores are bad at retention” but “stores measure retention on the hardest setting.” It is also why the moment a store bolts on a contract-like mechanic, a subscription, a loyalty program with meaningful stored value, a replenishment rhythm, its number starts drifting up the table. We cataloged those mechanics in our loyalty program ideas piece.

The full published table

Click a header to sort. Everything comes from the Shopify roundup except the two rows labeled otherwise.

Vertical Avg. retention rate Source
Media companies84%Shopify roundup
Professional services84%Shopify roundup
Automotive & transportation83%Shopify roundup
Insurance83%Shopify roundup
IT services81%Shopify roundup
Construction & engineering80%Shopify roundup
Financial services78%Shopify roundup
Telecom78%Shopify roundup
Health care77%Shopify roundup
Software77%Shopify roundup
Banking75%Shopify roundup
Consumer services67%Shopify roundup
Manufacturing67%Shopify roundup
Hospitality55%Shopify roundup
Ecommerce (all brands, Decile platform)30%Decile via Shopify
Online retail28.2%Cited by Omnisend

Inside the 30%: where the money actually concentrates

A single retention percentage flattens the most important fact about store customers: they are not evenly valuable. Smile.io’s loyalty report, built on a dataset of over 100,000 merchants across 148 countries, estimates that the top 5% of an ecommerce store’s customers generate 35% of its revenue. The Gorgias analysis Omnisend cites makes the same shape with different math: repeat customers are about 21% of a typical store’s customer base but produce 44% of its revenue and 46% of its orders.

So two stores with an identical 30% retention rate can have completely different businesses, depending on whether their retained third buys twice a year or twelve times. The same Smile.io report shows purchase frequency rising across every major ecommerce category in 2024, with CPG brands up 13.95% year over year and recreation up 8.68%, which is a reminder that frequency, not just the retained headcount, is where retention programs earn their keep.

Measure yours before you compare

Formula: (end - new) / start × 100. For a store, run it over your natural reorder cycle (90 or 365 days), not a random month. Reference points: 30% (Decile average brand), 28.2% (online retail figure cited by Omnisend).

Methodology and caveats

Industry retention rates are from Shopify's staff-written roundup updated September 11, 2024, which aggregates published figures per industry; its ecommerce line explicitly cites Decile's 2023 Ecommerce Benchmarking Guide (average retention of 30% across brands on the Decile platform). The 28.2% online retail figure and the Gorgias repeat-customer analysis (21% of customers, 44% of revenue, 46% of orders) are as cited in Omnisend's repeat customers guide published January 9, 2024. Revenue concentration (top 5% of customers producing 35% of revenue) and purchase frequency trends (CPG +13.95% YoY, recreation +8.68%) are from Smile.io's State of Ecommerce Customer Loyalty report published February 26, 2025, based on 100,000+ merchants. Caveats worth carrying: each source measures retention over its own window with its own churn definition, the cross-industry figures are directional rather than strictly comparable, and none of these datasets is a random sample of all commerce.

The takeaway is a comparison discipline. Benchmark your store against the ecommerce column, never the cross-industry headline. Beat 30% sustainably and you are ahead of the published field. And when you want to move the number rather than admire it, the levers are the boring ones documented across this site: a welcome flow that converts the first purchase into a second, and a win-back machine that catches the ones drifting away.

Frequently asked questions

How do I calculate customer retention rate?

Pick a period, then compute (customers at end minus new customers acquired during the period) divided by customers at start, times 100. A store that starts the quarter with 1,000 customers, acquires 400, and ends with 1,250 retained (1250 - 400) / 1000 = 85%... of a customer base that mostly did not need to buy again that quarter. That is why period length matters more in ecommerce than anywhere else: measure over your natural reorder cycle, not a calendar habit.

What is a good retention rate for an ecommerce store?

Against the published baseline, anything sustainably above 30% beats the average brand in Decile's data, and above 28.2% beats the online-retail figure Omnisend cites. But vertical matters: consumables with a monthly reorder rhythm should sit well above the average, while a mattress or luxury store can be perfectly healthy far below it because the honest reorder window is years.

Why is ecommerce retention so much lower than other industries?

Because most published retention tables mix business models. A bank customer stays by default and leaves by effort; a store customer leaves by default and stays by effort. Subscriptions are the exception that proves it: the moment a store adds a contract-like mechanic, its retention math starts resembling the service industries.

Which number should I actually track, retention rate or repeat purchase rate?

For a store, repeat purchase rate is usually the more honest lens because it does not depend on defining an arbitrary churn boundary for customers who buy on their own schedule. Track retention rate quarterly for trend, and repeat purchase rate by cohort for decisions. We cover the repeat purchase benchmarks separately.

Sources & data

  1. Shopify, Average Customer Retention Rates by Industry (by Shopify Staff, updated September 11, 2024; ecommerce figure cites Decile's 2023 Ecommerce Benchmarking Guide)
  2. Omnisend, How To Get Repeat Customers (published January 9, 2024; cites 28.2% average online retail retention and a Gorgias repeat customer analysis)
  3. Smile.io, The State of Ecommerce Customer Loyalty in 2025 (published February 26, 2025; dataset of 100,000+ merchants in 148 countries)
Cite this piece: The Retentionist (2026). “Customer Retention Rate: What Normal Looks Like by Vertical.” https://theretentionist.com/benchmarks/customer-retention-rate-by-vertical/