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What is customer retention?

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Quick answer

Customer retention is keeping existing customers coming back over time, rather than constantly chasing new ones. Since retaining customers is usually far cheaper than acquiring them, strong retention is one of the most profitable growth levers a business has. It's keeping existing customers loyal over time.

Key things to understand

  1. It's keeping existing customers loyal over time.
  2. Retaining is usually cheaper than acquiring.
  3. Loyal customers spend more and refer others.
  4. It's driven by great products, service, and experience.

People also ask

What is customer retention?
The ability to keep existing customers returning and buying again over time.
Why is customer retention important?
Retaining customers is far cheaper than acquiring new ones, and loyal customers spend more and refer others.
How do you improve customer retention?
Deliver consistent value, great service, loyalty rewards, and ongoing engagement.