What Is Customer Retention?
Customer retention, expressed as a percentage, measures the number of customers retained by the end of a given time frame. Companies can use it to quantify brand loyalty or their ability to retain customers.
There is a strong correlation between customer retention and a stable revenue stream, which is why implementing a customer retention management program is necessary. By doing so, businesses can extract more value from customers, such as repeat purchases.
Comprehensive customer retention strategies, in essence, focus on building and nurturing relationships. Therefore, its processes and actions are explicitly designed to ensure a great customer experience, leaving little to no room for customers to defect to competitors.