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    Customer Retention

    Customer retention is a business performance indicator that accounts for customers who stay with a business or make repeat purchases within a given period of time.

    What Is Customer Retention?

    It’s beneficial when a customer buys from a business, but it’s even better when that customer buys again and again. Customer retention is a way of measuring the number or percentage of customers who stick with a business for a period of time.

    Customer retention is often a key performance indicator for many businesses because it can indicate how successful that business’s customer engagement, marketing, and sales efforts have been. Low customer retention might mean that customers aren’t satisfied with a product and are turning to a competitor’s product instead. A high retention rate means customers are happy with what they’re getting from the brand.

    Retaining customers is often less expensive than attracting new customers, and loyal customers can often turn into brand ambassadors who write positive reviews or recommend a business to others. For these reasons, businesses tend to spend significant time and energy on improving customer retention.

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