Product
Customer Retention
Definition of
Customer retention refers to the ability of a business or organization to retain its existing customers over a period of time. It is a key performance indicator for customer satisfaction and loyalty, and it is essential for long-term profitability and sustainability. Customer retention can be achieved by offering superior products or services, excellent customer service, loyalty programs, discounts, and other incentives to keep customers coming back. For example, a restaurant can retain its customers by providing a great dining experience, personalized service, and special deals for regular customers. An e-commerce business can offer free shipping, exclusive discounts, and personalized recommendations based on the customer's shopping history to retain their loyal customers. By focusing on customer retention, businesses can reduce their customer acquisition costs and increase their revenue and profitability over time.
A calculation of how many customers renew their subscription or contract at the end of their term.
